h u n g a r y A publication of the American Chamber of Commerce in Hungary november/december 2009 – Volume XX/8 Keep pushing CEO Péter Dávid on the future of AmCham

Chilly Survey Available messages says options Investors sent Negative Creating out into the social a Roma cold tendencies tourist Hurt center

ISSN 1417 1864 Online 1417 3778 1290 Ft €5

us HUNGARY us H UN GA RY usA anbgc ai l HUNGARY a ct FISCAL D I S C I P L I N E , L E S S D E B T , MORE GROWTH G orw ng i A STRATEGICON DECISI AGAINST t ga f r CORRUPTION IS NEEDED Politics of common Fresh sense patronage Looking to pass FlexibilityPowers of the PC THE NEED Holiday FOR A NEW at home? LABOR CODE Taking a n d the burden Contents now s e c u r i t y

Follow A different Using the Portugal’s sound advantage 02 Letter from the AmCham President example

03 03 Keep pushing Editor in chief • CEO Péter Dávid on the future of AmCham Henk Hirs

04 AmCham celebration Deputy editors • 20 Years of constructive partnership Marisa Beahm, Runa Hellinga, Drew Leifheit 07 Looking back • Long-standing AmCham members reflect on anniversary Associate editor Nick Robertson 12 An uphill battle

07 • The future business landscape Photo editor ★ Contents Róbert Karádi 14 Chilly messages • Investors sent out into the cold Design Dominika Kiss 16 Survey says • Negative social tendencies impact competitiveness typography György Éger 1 14 18 Available options • Creating a Roma tourist center Contributing writers Tamás Kern, Kornélia Magyar, AmCham 20 Analyst views Paul Marer, András Török Hungary • Tamás Kern (Századvég Institute) and Kornélia Magyar (Progressive Institute) on political developments PHOTO CONTRIBUTORS Márton Magócsi, MTI, 26 October/November in review kormanyszovivo.hu, stockxpert, 18 Runa Hellinga, Balázs Nagy, Reuters, 30 Culture and lifestyle Csilla Budai, György Éger • Tales of a city, with special walks in Budapest • András Török: Seven great Christmas gift ideas Sales manager • Dining Guide: Restaurant 67, the surprise of the year Eszter Csanda • December/January Happenings (+36.30 664 9656)

37 AmCham news Production manager 22 • Patron interview with Pannon’s CEO Anders Jensen Péter Wunderlich • New labor code seminar successful • Health care: debating vital questions Publisher • Patron interview with Ferdinando Beccalli-Falco, András Wiszkidenszky CEO of GE International • AmCham events in pictures Amcham Hungary is published • AmCham’s Annual General Assembly by • Thanksgiving Charity Drive PrintXBudavár Zrt. • Events, new members, staff H–1061 Budapest, Király utca 16 39 Phone: (+36.1) 887 4848

This is a special issue of Business Hungary. Subscriptions Call (+36.1) 887 4848 or write to [email protected] Advertising inquiries Don’t forget to mention name, street, city and postal [email protected] code, country, telephone number and e-mail. Prices: Hungary Ft 5,500/yr Europe €33/yr Letters to the editor US and elsewhere $47/yr [email protected] AmCham Board of Governors Dear Members President Dr. Gusztáv Bienerth T: (+36.1) 266 9880 Fax: (+36.1) 266 9888 [email protected] and Friends First Vice President DAVID YOUNG Amrop Hever Group / Kohlmann & It was truly an event which we worked hard on, as we wanted to make it memorable. We Young 1023 Budapest, Romer Floris utca 57 wanted to celebrate our first 20 years and say “thank you” to all those who contributed their T: (+36.1) 392 0970 Fax: (+36.1) 391 0951 time and work all these years. The venue was not only appropriate but also reflected our E-mail:[email protected] tradition of holding these black-tie events every five years in the Hungarian Parliament. I Second Vice President was really happy to see over 350 guests, among them many familiar faces and old friends STEVE CORWELL AES Hungary of our chamber. 1072 Budapest, Rákóczi út 42 I would like to thank speakers Péter Oszkó, minister of finance, Stephen Brugger, T:(+36.49) 885 006 Fax:(+36.49) 341 756 E-mail: [email protected] chairman of the European Council of American Chambers of Commerce, Jeffrey D. Levine, chargé d’affaires ad interim of the Embassy of the United States of America, professor Secretary Treasurer FERENC PONGRÁCZ Paul Marer from the CEU Business School, and István Havas, country managing partner IBM Hungary of Ernst & Young, and board member of AmCham, as the representative of the diamond 1117 Budapest, Neumann János u. 1

AmCham: Letter from the President T: (+36.1) 382 5925 Fax: (+36.1) 382 5501 sponsor of this celebration. We also presented awards certifying longtime service and E-mail: [email protected]

★ valuable contribution to the work of AmCham to 34 people and the board granted honorary Board Members at Large membership for life to Zsuzsa Rajki for her longtime service as a board member and for her 2 László M. Balássy 20 years of dedicated work and terrific contributions. Citibank Europe Plc 1052 Budapest, Szabadság tér 7 We are very thankful for the significant support members have shown regarding the T: (+36.1) 374 5471 Fax: (+36.1) 374 5445 20th Anniversary. [email protected] AmCham But life goes on. The challenges and tasks do not diminish or decrease, and the new Hungary Ferenc Báti board elected on December 1, 2009 will inevitably have an exciting year in 2010 to fulfill the Individual Member [email protected] election commitments. Here I would like to say special thanks to outgoing Board Members Péter Paál, László JOHN CANTWELL Szakál, Erzsébet Antal, Barbara Brill, and Chris Mattheisen. They have served the board Dramatrix Tréning Központ Kft. either for two or four years, and I have to say, it was an honor for me to work with them. 1114 Budapest, Szabolcska Mihály utca 3 T: (+36.1) 365 1680 Fax: (+36.1) 365 1680 You can read in this issue about our Annual General Assembly and about the new E-mail: [email protected] board members, truly reflecting the diversity of not only our organization but also our

István Havas membership. I am excited to work with David Young, Steve Corwell, Ferenc Pongrácz, John Ernst & Young Cantwell, Andrea Jádi-Németh, and Frank J. Klausz 3rd. 1136 Budapest, Váci út 20 T: (+36.1) 451 8700 Fax: (+36.1) 451 8199 As we are approaching the holiday season, I wish all of you a merry Christmas and a [email protected] prosperous New Year!

ANDREA JÁDI-NÉMETH bpv | Jádi Németh Attorneys at Law Best regards, 1051 Budapest, Vörösmarty tér 4 T:(+36.1) 429 4000 Fax:(+36.1) 429 4001 Gusztáv Bienerth E-mail: [email protected]

FRANK J. KLAUSZ 3rd A.T. Kearney 1054 Budapest, Kálmán Imre u. 1 Phone: +36 30 243 5200 Fax: (+36.1) 475 1111 E-mail: [email protected]

Dr. Csaba Szokodi Johnson & Johnson Kft. 2045 Törökbálint, Tó Park T: (+36.23) 510 919 Fax: (+36.23) 510 929 [email protected]

Chief Executive Officer Péter Dávid AmCham 1051 Budapest, Szent István tér 11 “A merry T:(+36.1) 266 9880 Fax:(+36.1) 266 9888 [email protected] Christmas and Ex Officio Members • Les Nemethy • Robert Peaslee • Péter A. Hegedűs • András Sugár • Charles A. Huebner a prosperous • Péter Kraft • László Czirják • Robert C. Knuepfer Jr. • Edward J. Bush Jr. • Theodore S. Boone • Steve Bina • Michael J. Shade New Year!” Keep pushing CEO Péter Dávid on the future of AmCham

It is AmCham’s main task to keep issues like Hungary’s competitiveness and the fight against corruption on the public agenda, says CEO Péter Dávid. “Even if the ultimate results are beyond the control of our organization, we have to keep pushing, and we will.” by Henk Hirs

h e celebration o f t h e 20t h birthday of AmCham Activities and benefits Hungary on November 6 was used by the organization to

set out some guidelines for the future, based on more than In the meantime, AmCham is “well on the way” to develop new ★ T30 interviews with opinion leaders affiliated with AmCham. benefits and services for its members, Dávid emphasizes. “For In focus “The majority of these opinion leaders – current and former leaders example, we want to be more selective in organizing events, of AmCham and longtime supporters – are of the clear opinion that making sure that the ones we do organize are of high-value content neither the name of the organization nor our mission statement and fit in well with other AmCham programs and goals.” Maybe needs to be changed,” says Dávid. “The name is an established AmCham will also offer separate events for a selected public, such brand, well recognized in society and expressing what we are as corporate members or SMEs, he says. standing for, while our mission statement – representing American Recently, the AmCham Market Place program and the 3 and other foreign investment and striving for more competitiveness Membership Card program have started, where companies can and transparency – is as valid as ever.” offer member-to-member services and discounts to each other. The success, of course, depends on the active involvement of AmCham Hungary Mission member companies, Dávid says. “There are several other major innovations and changes on the way. The first in line is a new visual Still, it is clear that Hungary’s competitiveness has eroded over identity, which was unveiled during our anniversary ceremony at the past years, and one could well ask what that says about AmCham’s the Parliament and has been used ever since. We have decided activities in this respect, he acknowledges. “The reality is, of course, it was time to modernize and rationalize our communications that this is beyond our direct control. But, we need to keep pushing for with members and the external audience, so for that end, we are this goal with the government, legislators, and all other stakeholders launching a new portal, and AmCham’s monthly magazine will be involved and keep the issue on the agenda for the good of this country rebranded and restructured. We are doing all this with a reduced and for business in this country. This is what we can and must do.” staff and in an economic environment where it is more difficult to Much the same applies to the question of corruption, the fight find sponsors. All this adds up to each and every one having to give for transparency, and better corporate governance, Dávid says. 120%. And I encourage our members to get involved in our activities, “Nowadays, the most frequent question I get from foreign investors especially in the professional work of committees and councils, as wanting to know more about Hungary is not what the situation is we do need the input of many more companies – their knowledge, like with the economy or taxes or wages, but what the situation their experience, and their time,” Dávid concludes. ★ is with regards to corruption. They want predictability, openness, and fairness, and sadly, I have to tell them that this is not always the case. I believe that lack of transparency is the number one issue, and we must continue to advocate for this in the public sector, in the business world, and in our parliamentary democracy in general.” AmCham will also continue to represent business interests, Dávid says, acting and advocating on behalf of its members if and when there are certain difficulties and issues. There is also a need to explain to authorities and the public at large what companies are doing here, and why and how they benefit Hungary, not only in terms of money and jobs, but also of know-how, industrial and business culture, and social corporate responsibility. There is wide agreement that in striving for these goals, AmCham is not competing with other organizations, but should be cooperating closely with other chambers like the German and the British, with business organizations like the Joint Venture Association and the Hungarian Service and Outsourcing Association, with NGOs, and with universities and schools like ELTE, Corvinus, CEU and the Budapest Business School. AmCham celebration 20 Years of constructive partnership

in his opening speech at the celebration of AmCham’s 20th anniversary on November 6 in the Old Upper House of Parliament, AmCham President Gusztáv Bienerth congratulated the AmCham members for all that has been achieved over time. he thanked them for their work and effort,

In focus which is what made AmCham what

★ it is. Bienerth reiterated AmCham’s commitment to competitiveness as the cornerstone of its policy, and 4 to unbiased dialogue and an open society, promising a more pro- active course. He also lambasted the pessimism and self-pity heard in some sections of society. “Stop this AmCham nonsense, because it is not true. We Hungary are no better and no worse than our competitors and we have to look ahead,” he said. Bienerth also announced that AmCham established a new “Public servant of the year” award, to be announced every 1st of July, for outstanding achievements in reducing state bureaucracy.

Minister of Finance Chargé d’Affaires of Péter Oszkó said the US Embassy Jeffrey “We have to target D. Levine praised the fiscal balance and close cooperation with competitiveness at AmCham. Since 1989, US the same time.” companies invested over $9 billion in Hungary and the country today is “vastly different.”

“AmCham Hungary has really made a István Havas, difference,” said country managing Stephen Brugger, partner in Hungary chairman of the of Ernst & Young European Council (diamond sponsor of American of the celebration), Chamber of was not the only Commerce. one pointing out that, in spite of all progress, Hungary is also faced with growing disappointment, suspicion and even hostility towards the market economy. 34 people received an award for their hard work and commitment to AmCham and its ★ activities, be it as Presidents, Board members, committee chairs or founders. In focus

The new logo of AmCham was unveiled by CEO Péter Dávid and Hannes Wirnsberger, CEO of DDB. 5

AmCham Hungary

Mike Kelly recited the inspirational and motivational poem “If”, by Rudyard Kipling.

Zsuzsa Rajki received honorary membership of AmCham for her longstanding commitment to the work of the Chamber and of the AmCham Foundation.

There were special thanks and a warm applause for Péter Fáth, CEO of AmCham from its foundation in 1989 until February 2008.

Botond Rencz, Head of AmCham’s Tax Council, performed the official birthday toast. Dinner reception In focus ★ 6

AmCham Hungary

Piece of Csaba Csedő the grand (Pivot Human Anniversary Capital), Éva cake provided Virág (Hewitt) by the Budapest and Sándor Marriott Hotel Erdei (DBH Business Support)

Julia and Les Nemethy with Ilona Jankovich (Profi Power) and Barbara Brill (Emmis International)

former presidents, diamond and gold sponsors, and speakers

AmCham thanks the sponsors: Ernst & Young (diamond), GE, Coca-Cola, ExxonMobil, and Erős Ügyvédi Iroda/Squire, Sanders & Dempsey LLP (gold), AES, Guardian, American Express, Johnson&Johnson, and Pfizer (silver), Morgan Stanley, Cisco, Brink’s C.L., Budapest Marriott Hotel, and Interag (bronze), and the BBJ (media). Looking back Long-standing members reflect on amcham’s history

What was the most memorable “AmCham’s 10th Anniversary celebration in the Congress Hall of AmCham event you have attended, and Parliament and the short meeting with President Clinton at the what made it stand out? airport. Both of these events demonstrated that AmCham Hungary has become a mature organization that is respected by its members “The most memorable AmCham event for me was its foundation session as well as by other stakeholders.” which took place on November 30, 1989 in Budapest. It was a really Tibor Vidos, regulatory government relations and legal

unique and thrilling, unforgettable event, like a starting love romance. affairs officer, Crnogorski Telekom ★

That afternoon, some Hungarians and Americans came together with In focus the declared and published aim of founding the American business “The first AmCham Hungary EU lobby tour in September 2003. Just lobby – the first one of its kind in this region – to further increase and before the historic accession of Hungary, it marked the country’s re- strengthen trade, investment, and other cooperative ties between admission into the European club. Also, it was a great recognition Hungary and the United States where hundreds of thousands of of AmCham’s work that we were greeted warmly and treated very Hungarians - immigrants, refugees – found home.” seriously wherever we went in Brussels.” Gyula Béla Bányai, senior journalist, Világgazdaság Károly Fekete, 7 managing partner, Consulting Group Buda “Among the most memorable, I would include horse-loving former president Ed Bush’s farewell reception at the Marriott when we “Bringing donations to the children at the home in Girincs and AmCham brought a live pony onstage, Boney M.’s first appearance at the seeing their ecstatic faces when Ronald McDonald sang with them. Hungary AmCham’s Valentine’s Day Ball, and the time I lasted 25 moves during The return you get from reaching out to children in need is much an AmCham-sponsored simultaneous chess match against a 15-year- better than any financial return you can ever dream of.” old Peter Leko, who is today one of the top chess players in the world.” David McCall, David Young, managing partner, Amrop Kohlmann & Young general manager, Wampum

The Founding Assembly on November 30 Delivering Thanksgiving gifts to children US President Bill Clinton

1989 1991 1994

20 Facts about AmCham Hungary:

1 It was the first AmCham in Eastern Europe 2000 on national competitiveness, taxation reforms, and 2 AmCham has organized close to 2,500 business-related foreign direct investment networking events 5 AmCham hosted US Presidents George Bush, Bill Clinton, 3 There are 103 AmChams worldwide and George W. Bush 4 AmCham has written 15 position briefs and papers since 6 In 2008, 5,808 people participated in 130 events In what ways has your AmCham “I met several leaders from different sectors of the economy; I membership benefited you in the learned different perspectives [in addition to one about] health business community? care. I took part in several meetings where I had the opportunity to understand different rationales on finance, taxation, labor, and “AmCham provided a great network of people and institutions that legislation. I must say, it was a very interesting experience. helped me to improve my knowledge and increase my exposure to László Polák, director strategic affairs, Johnson & Johnson MD&D Western business practices and skills, while being a great potential market for services at the same time.” “I was the only Hungarian on the first board. As the CEO of Tibor Vidos, regulatory government relations and legal DOW Hungary – the first manufacturing investment in June 1989 affairs officer, Crnogorski Telekom – and founder of AmCham, I had the honor in the early ‘90s to meet and share the initial experiences with most of the potential “I was duty editor of Hungary’s only business paper, Világgazdaság, investor candidates who intended to enter the Hungarian market. at that time. AmCham membership was – and has been ever This opened a new horizon to get acquainted with the view and since – an immense source of invaluable information. AmCham concerns of the various industrial segments.” membership enabled me to have easier and quicker access to Zsuzsa Rajki, board member, AmCham Foundation exclusive American sources of information on US decision makers, potential US investors, corporations, and companies that wanted “AmCham has provided a forum where our company could to come to Hungary. And this information was very useful to our meet partners who share many of the same American values that readers, to Hungarian political decision makers, and to foreign we operate by. Over the years, these contacts developed into companies intending to come here, including German ones.” business opportunities.” Gyula Béla Bányai, senior journalist, Világgazdaság Peter Freed, president, Duna Elektronika In focus ★ 8

AmCham Hungary

AmCham President Ed Bush and his horse Microsoft founder Bill Gates Valentine’s Day Ball with Boney M. 1994 1997

Business leader George Soros US Ambassador Nancy Brinker AmCham soccer tournament 2001 2003

7 AmCham has 11 committees and four councils that represent 10 In 2008, four out of 12 AmCham board members were named AmCham members’ interests Peter 8 The average age of the AmCham staff is 35.1 11 AmCham has hosted 15 Valentine’s Day balls with special 9 AmCham has held three US-election parties since 2001 with guest stars, including Boney M. in 1997 and 2009 3,950 participants in total 12 AmCham was the first foreign chamber of commerce to obtain the ISO 9001 qualification “I have been an active member of the American Chamber of “I met many of the CEOs/GMs of other companies, and we Commerce since 1991, and for me, AmCham is very much an exchanged ideas and experiences.” integral part of my business life in Hungary. AmCham has given Charles A. Huebner, me numerous business connections, many insights into business partner, iEurope Capital and politics in this not uncomplicated country, and many long- term friends.” Over the last 20 years, what are David Young, some of AmCham’s achievements or managing partner, Amrop Kohlmann & Young influences that you find the most significant for Hungary? “Being a member of AmCham means that you are associated with a great organization, one which is looking out not only for business “AmCham has championed several issues and made its voice heard interests, but the interests of the whole community. AmCham when others have remained silent, or when others were not yet members recognize that in each other.” thinking that far ahead. AmCham was recycling before it was David McCall, general manager, Wampum chic. AmCham was leading the tourist revolution before tourism was an issue. AmCham was cooperating with Junior Achievement “My six years as chair of the Euro-Atlantic Committee blended and making recommendations regarding the educational pillar of

very well with my advisory business specializing in EU matters. the country before most understood that business could benefit ★

It provided extra contacts, insight, information, and, from time to education. AmCham sponsored REACH and emissions trading In focus time, even new clients.” workshops long before most even knew what their definitions were. Károly Fekete, Thanksgiving transformed a practice into a significant foundation.” managing partner, Consulting Group Buda David McCall, general manager, Wampum

9

AmCham Hungary

10th Anniversary Gala at Parliament Charity bike ride for flood victims Secretary of State Madeleine Albright 1999 2000

Vote-counting committee The 15th-Anniversary Gala at Parliament Lunch with Fidesz leader Viktor Orbán

2004 2005

13 Hungarian Prime Ministers Péter Boross, Gyula Horn, 15 AmCham has moved to four different offices in three buildings Viktor Orbán, Péter Medgyessy, Ferenc Gyurcsány and Gordon 16 The Regional Energy Forums – initiated by GE – are co- Bajnai have attended AmCham events organized by eight American Chambers of Commerce, representing 14 AmCham works closely with the European Council of over 170 million citizens and more than 2,900 companies American Chambers of Commerce (ECACC), which represents 17 AmCham members have donated more than Ft 200 million for over 14,000 companies and over $300 billion in investment charity to assist the operation of civil organizations throughout Hungary “First of all, AmCham is a business voice to reckon with during “Setting up an investors’ council with the top leaders of the both the legislative and the implementation process of governing. Hungarian government, representing the interests of companies Second, AmCham is for the ever-growing competitiveness of vis-à-vis the government, and running educational meetings for Hungary. Third, AmCham is an organization firmly standing Hungarian members especially with respect to marketing and for transparency and is against any kind of corruption. It adapts building multinational networks.” these strict rules in its own practice and expects government to Charles A. Huebner, do likewise. Fourth, AmCham is for charity, for the support of the partner, iEurope Capital needy. And last but not least, AmCham is for fun, for having a good time even during difficult periods.” “The American Chamber of Commerce is the premier business Károly Fekete, managing partner, Consulting Group Buda chamber operating today in Hungary. It has achieved a position whereby its opinions are sought after by the government, the “It is important that AmCham has proven over the past 20 years opposition and the media. I feel very strongly that in the coming that it has stood firmly for transparent best-business practices and years AmCham will need to continue to take strong and vocal has invested time and effort to continually lobby each successive positions on our core beliefs: competitiveness, transparency, and government to conform to these principles. The chamber’s efforts in business ethics, the free market, and the reduction of the role of the putting forward expert suggestions on tax, education, health care, state.” and other important issues of the day show clearly the business David Young, community’s desire to move the Hungarian economy forward.” managing partner, Amrop Kohlmann & Young Peter Freed, president, Duna Elektronika In focus ★ 10

AmCham Hungary

US President George W. Bush Prime Minister Ferenc Gyurcsány First Regional Energy Forum at Parliament

2006 2007

US Ambassador April Foley US Election Night Party 2008 EU Tax Commissioner László Kóvacs

2008 2009

18 AmCham has hosted leading business figures, such as 20 AmCham has had 74 board members and 12 presidents George Soros, Jeff Immelt, and Bill Gates 19 AmCham launched the AmCham-TV2 Business Lounge Video series, which puts business leaders one-on-one with political and economic decision makers

The future business An uphill landscape

Hungary went from a leading position in the region in the ‘90s to a disappointing performance during the present decade. In the battle future, Hungary will have to rely relatively more on internally generated sources of productivity External environment

and competitiveness. A key to the country’s A country’s economic performance – past and future – depends future business landscape is whether elected in part on the external environment and in part on the effectiveness officials will have the political will – and the of its domestic policies and institutions (including government country the social cohesion – to fix or improve, bodies, companies, and NGOs). During this decade, prior to the at sufficient speed, those areas where it lags global crisis, the external environment for Hungary and the rest of Eastern Europe was favorable. In focus behind its competitors. by Paul Marer

★ The region’s impressive growth rates through 2007 rested on three pillars, which I call the Eastern European growth model: 12 1. Extraordinary rapid trade and financial integration into the global c o n o m i c h i s t o r i a n s are likely to evaluate the 1990s economy, especially the EU, as shown by the fast increases in as a decade of impressive achievements in Hungary’s these countries’ foreign trade and foreign financial participation AmCham transformation to a market economy. Hungary had the ratios in GDP. Hungary E lead position in the region. Among the reasons was 2. Large capital inflows, including FDI, making rapid growth of the decision to privatize state-owned enterprises largely by selling productivity and improved living standards possible. Continuous them (instead of voucher privatization or management buyout); capital inflows helped to finance large current-account deficits another was that Hungary welcomed and supported foreign direct and thus excess consumption. investment (FDI). A large number of foreign firms came to Hungary. 3. Appreciating real exchange rates, contributing to improved living AmCham was established and quickly became the most influential standards and to keeping inflation in check. organization representing foreign investors in the country. Let us note that all three pillars rest on sources of growth Hungary’s comparative economic performance during the that are partly or largely externally generated or supported. I current decade has been somewhat disappointing. AmCham am in agreement with those who forecast that Western Europe’s members know well the facts and the reasons behind them. To recovery and growth during the next five years will be sluggish. If be sure, regional growth comparisons are often biased against correct, this does not bode well for Hungary and Eastern Europe, Hungary, whose population has been stagnating – versus the rapid because it means that the region’s past rapid trade and financial population growth in neighbors like Poland. Therefore, per capita integration into the EU (pillar one) is also likely to slow. Net capital growth comparisons put Hungary in a better light, not far from the inflows, including FDI (pillar two), are likely to be smaller also, in region’s average. part owing to the growing relative attractiveness of China and Asia’s other developing countries. And the sustained large appreciation of real exchange rates (pillar three) is unlikely to continue, especially not vis-à-vis the strong euro.

Improve the effectiveness of government at all levels. Internal sources

If these assumptions are correct, it means that in the future, Hungary (as the rest of Eastern Europe) will have to rely relatively more on internally generated sources of productivity and competitiveness, that is, factors largely within the control of the nation’s authorities, industries, firms, and workforce. These include improvements in the physical and social infrastructure, in the health and education of the workforce, in the efficiency of the markets for goods, services, and labor, as well as better technological readiness and innovation. At the top of Hungary’s agenda on

internally generated improvements in ★

productivity should be to streamline and In focus improve the effectiveness of government at all levels. Let me highlight a few facts from the two best-known international comparisons of national competitiveness – the Global Competitiveness Report (GCR) of the World Economic Forum and the 13 Ease of Doing Business (EDB) index of the World Bank. In the GCR, Hungary’s global AmCham competitiveness, expressed in a single Hungary composite number, ranks this nation 58th among the 133 countries surveyed. The most problematic factors of doing business in Hungary are the tax regulation and rates and the inefficiency of government bureaucracy. On the “burden of government regulation” indicator, Hungary ranks 130th among the 133 countries surveyed; 127th on the “wastefulness of government spending”; 114th on the “favoritism in decisions of government officials”; 113th that AmCham will remain in the forefront of these critically on the “transparency of government policy making”; and 111th on important efforts, given its declared mission to work to improve “public trust in politicians”. Since there are some questions about Hungary’s global competitiveness. Let me conclude by suggesting – methodology, these rankings should not be taken as absolutely exhorting, if I may – each and every member of this influential body accurate. But, it is unquestionable that the neighborhood Hungary to redouble his or her active support for such AmCham initiatives finds itself in, with respect to the efficiency of its government, is as the transparency of decision making and anti-corruption efforts. not a desirable one. The EDB ranks Hungary 47th among the Progress in these areas will make the local business landscape 183 countries surveyed. The major problems identified are taxes – more inviting for each and every foreign company and improve where Hungary ranks 122nd – and, surprisingly, the “protection of Hungary’s global competitiveness. investors” where Hungary ranks 119th. It would not be fair to deliver only the bad news. Hungary ranks quite well on public health, its This is a slightly abridged version of the speech given at the educated workforce, and the relatively low incidence of crime. celebration of AmCham’s 20th anniversary by Paul Marer, professor at the CEU Business School. Marer emigrated from What will shape the future? Hungary to the US in 1956, where he became a professor of business at Indiana University Bloomington. He wrote books The key factors that will determine Hungary’s future business and articles about Hungary’s economic and political reforms landscape – which is the microeconomic foundation of productivity and spent sabbaticals at the IMF and the World Bank. In 1989, he growth, competitiveness, and thus, the standard of living – is was a co-founder of the “blue ribbon commission” (BRC), which whether the country will have the political will and social cohesion set out to chart the unexplored route of transforming Hungary to fix or improve, at sufficient speed, those areas where it lags from a centrally directed economy, which had proven to be a behind its competitors, while at least maintaining its comparative dead end, to a market economy – the only possible destination advantages in other areas. Generating the political will and a social after systemic collapse. In 2000, Marer returned to Hungary to consensus will be an uphill battle for years to come. I am confident teach and help administer the CEU Business School. ★ Chilly messages Investors sent out into the cold

On November 18, the embassies of nine countries representing the bulk of foreign investors in Hungary (the US, Belgium, France, Germany, Great Britain, Japan, the Netherlands, Norway, and Switzerland) issued a rare joint statement expressing concern over “non-transparent behavior” in Hungarian public life. This statement was clearly inspired, among others, by two recent affairs in which foreign investors were deprived of their Hungarian businesses in what diplomats describe as very unusual and improper ways, while the courts will have to decide whether or not it was downright illegal. by Henk Hirs

n No v e m b e r 19, highly popular commercial in 1997 and built the two most successful commercial music radio stations Sláger and Danubius had to stop stations, together reaching millions of listeners every day. The Business

★ broadcasting after their frequencies were reassigned recent procedure for a seven-year renewal of permits was highly O to other radio stations some weeks before in what is irregular from the start, explains Edina Heal, managing director 14 seen by many as a flawed deal. “It’s a chilly message for investors,” of Sláger. The tenders should have been concluded in 2008 to says Barbara Brill, vice chairwoman of Sláger Rádió and senior give ample time to organize advertisement and programming vice president for operations at Emmis International. “It is very sad, for the new period, but due to all kinds of political maneuvering, AmCham for the listeners as well as for businesses, to see how these two it was only concluded in the very last minute on October 19, she Hungary nationwide radio stations are in fact being renationalized.” Also says. The annual broadcasting fee that Hungary is demanding is in prior weeks, the city of Pécs unilaterally broke a long-standing absurd anyway, as the European average is 1–3% of revenue, while contract with French-owned Suez Environnement and took control Hungary in fact demands some 18%. But the current winners of over the city waterworks in a way that diplomats call “shocking”. the tender offered a totally unrealistic 50–55%, which just doesn’t make any business sense, Heal claims. Airwaves Also, according to Heal, their bids were full of formal mistakes which should have excluded them from the tender anyway. And Brill Sláger and Danubius (the latter owned by Vienna-based reveals that one of the competitors in the tender approached her investment fund Accession Mezzanine Capital in which also with the offer to step back from the process in exchange for 50% of the EBRD has a share) obtained their nationwide frequencies the ownership in Sláger Rádió. “I immediately rejected the idea, as this is not how Emmis does business,” says Brill. It is at least remarkable that MSZP and Fidesz representatives in the National Radio and Television Commission (ORTT), whose members are delegated by parties, voted unanimously and without serious debate to award the frequencies to NeoFM and Klassz Rádió, considered by many to be left- and right-wing leaning, respectively. The fact that the exact content of the winners’ bid was not published either after the decision was made also indicates lack of transparency.

Danubius and Sláger were highly popular. Diplomats went public with their concerns. ★ Business

According to an insider, the MSZP’s reasoning in agreeing on fee of Ft 120 million. There were no major complaints about the a deal probably was that this way, the party would at least have service offered by the jointly owned company, which employed one friendly radio station in the run up to and the aftermath of the 360 people, and supplied water to 40 additional villages and towns elections in April 2010, after which the ORTT will probably be nearby. Suez had put more than Ft 6 billion into improvements 15 dominated by Fidesz and Jobbik. and modernization since 1995. True, the local council voiced its Ironically, radio stations with biased political content are displeasure with the high price of water several times. not likely to attract much audience and advertising, so political A few years back, when Pécs was still ruled by the MSZP, the AmCham parties will probably end up with empty shells, Heal says: “Most council negotiated with Suez for some time to buy back its stake Hungary of our listeners don’t want any politics whatsoever, just music and in the utility. Estimates of what such a buyback should cost differ entertainment.” As a result, the revenue of the new stations might widely. The company has annual revenues of Ft 4.5 billion and well be zero, and the budget will in fact miss out on Ft 670 million is generating profits of Ft 250–300 million a year. But the talks in yearly broadcasting fees, she says. “I’m also sure that commercial amounted to nothing, and the idea was dropped, until Fidesz television broadcasters RTL and TV2, whose licenses are up for candidate Zsolt Páva was reelected as mayor earlier this year. renewal in 2012, follow this case closely,” says Heal. Suddenly, even before negotiations started, Pécs unilaterally The day after the decision, László Majtényi, the independent broke Suez’s contract in September (with the tacit agreement of chairman of ORTT, handed in his resignation, saying to MTI that “I the MSZP representatives in the local council), and on an early don’t think the case is closed; I think this is just the start of a scandal.” Monday morning, occupied headquarters, barred management The US Embassy in Budapest voiced its disappointment on many from entering, and announced it had set up a new company to take occasions. “These were radio stations owned by responsible over operations. foreign investors. Many share the frustration about this case. You When Prime Minister Gordon Bajnai, on a visit to France in can almost feel the price of risk in this country rising,” said Jeffrey mid-October, offered to mediate in the dispute, he was accused by Levine, chargé d’affaires of the US Embassy at the AmCham 20th Fidesz MP Erik Bánki of taking sides with foreign investors and anniversary celebration on November 6. failing to represent Hungarian interests. Bánki also stated that the Fans from Danubius and Sláger have also been pouring out prime minister’s approach was all the more incomprehensible as their fury and disgust about the decision on websites, with petitions the suspicion of serious crimes – including fraud, embezzlement, signed by hundreds of thousands of listeners, by people honking money laundering, forgery, and misappropriation of funds – has their car horns at a certain time during rush hour, and by attending arisen in the affair. How well founded these harsh accusations are a sympathy concert with Sláger in Budapest, all to no avail. Both is unclear. They are vehemently denied by Suez, and on November radio stations have gone to court, but a final ruling might take 6 the Budapest Municipal Court also judged that the takeover was months, if not years, and Emmis meanwhile decided to retreat from illegal. Meanwhile, there are reports that Suez and Pécs might be the Hungarian market. talking again. “In principle, we can understand that a council wants to buy Water trouble back shares in such a public utility. That could also happen in France,” says press officer Anna Maros from the French embassy According to many observers, the de facto renationalization in Budapest. “But the method should be one of consultation of the Pécs Water Works by the local government a few weeks and transparent legal procedure. The same is true if fraud and before looks just as shaky. The waterworks was partly privatized embezzlement are suspected.” According to Maros, the case has in 1995, with Pécs holding on to 50.05%, French-owned Suez far wider implications. “This is not a local issue, and this is not a Environnement Hungaria getting 48.05%, and 1.9% held with other French issue. This concerns all foreign investors. Let’s hope it is local councils. Management was put in the hands of Suez for a only a one-off and doesn’t spread.” ★ Survey says Negative social tendencies impact on competitiveness

Hungarian social attitudes feature high levels of distrust and reluctance to change, and are more closely related to orthodox, Eastern European countries than its Western neighbors, a recently released survey from local think tank Tárki revealed. Prompted by a declining GDP rate and recent economic setbacks, local leaders initiated the survey to investigate how deeply rooted values could be affecting economic performance. by Marisa Beahm

r i v e n b y a d e s i r e t o s e e the Hungarian economic

Business Mirror

★ climate improve, this survey’s aim was to form a 16 realistic picture of what the causes of recent failures While the results of the study are not likely to catalyze rapid D could be, says Péter Felcsuti, the managing director cultural changes, Felcsuti says the results can inspire dialogue, and of Raiffeisen Bank, who sponsored the study. he encourages people, especially Hungarians, to read the results. When analyzing a society’s economic performance, “it’s not “If you happen to be Hungarian, in a way, it is shocking and revealing, AmCham just about hard-core macroeconomic variables, but also, social and it’s a good thing sometimes to look in the mirror.” Hungary attitudes shape the competitiveness,” says István György Tóth, Amid the survey’s “shocking” results were also some positive Tárki chief executive officer. To generate data for the study titled outcomes. For example, the study showed that Hungary is a secular “Social and Cultural Preconditions of Economic Growth”, Tárki’s society, which both Felcsuti and Tóth say reflects positively on the research team conducted two different polls last March. One used local economy. “In the traditionalist versus secular values [category], the same questions as the World Values Survey, and one was the Hungarian value system is a bit more secular than it would be tailored specifically to Hungary. Both polls conducted personal predicted on the basis of the level of its economic development,” interviews with a cross section of about 1,000 people, representing Tóth says. “The role of religion, traditions, family, and authority is the 18-and-older Hungarian population, Tóth says. less marked in the value system than it is in most Western-European societies.” Also, results illustrated that Hungarians are generally enterprising, Felcsuti adds. “However, on the other hand, probably the most important finding is the fact that there is a deep-running mistrust in the society as a whole.” Moreover, in the category of materialist or survival attitudes versus those of self-expression, the Hungarians show a great deal of narrowness in their thinking, expressed by lower commitment to tolerance, political freedom, trust, and participation, Tóth adds.

Societal distrust

Regardless of what strata of society one addresses, there is a lack of trust and low rates of cooperation there, says Felcsuti. “People don’t trust each other, and they don’t trust institutions.” While Tóth says the amount of general trust between Hungarian individuals is about average compared with other European countries, there is a discrepancy that most people consider themselves to be honest, but “we are not that business competition is a constant fight against each other,” he particularly convinced that others are keeping rules, which creates says. “It’s discouraging to a great extent, because it comes as some frustration.” sort of legitimate deficit for the market economy.” According to the survey, only one EU country, the Czech According to the Tárki survey, there is also a higher-than- Republic, has lower levels of institutional confidence than Hungary. average level of acceptance of graft in Hungary, says Felcsuti. Interviewees were asked to rate their trust in certain Hungarian “Clearly, there is this belief that hard work alone is not sufficient for institutions on a ten-point scale, with ten meaning they completely success,” Felcsuti adds. “You need better contacts, a family, and trust the entity in question. The only institution that scored more sometimes, you need corruption. Clearly, this seems to be a view than five points, meaning more people trusted it than didn’t, was the that is quite widely held.” Academy of Sciences. The least-trusted institutions were government In contradiction to these widely held beliefs, the study revealed (2.3) and politicians (2.4), while trade unions, the press, opposition that getting ahead in Hungary relates more to learning much more parties and Parliament also scored below a four (see graph). than elsewhere, and returns to higher education in Hungary are The causes of this distrust are deeply rooted, continues Tóth, among the highest among the countries in the Organization for and could stem from a lingering culture of “doublespeak” which Economic Cooperation and Development (OECD), Tóth adds. arose during Hungary’s occupations – most recently by the Soviet rule in the second half of the last century – which created cultural Next step suspicion towards authority. Also, over the past 20 years, the errors ★ Business of the political elite have done little to build a new trustful structure, While both Felcsuti and Tóth are motivated to see Hungary’s he adds. economic situation improve, they are both realistic enough to These misgivings have negative ramifications in the business know that social change is a torpid process. “One cannot be community, Tóth says. “If there is distrust in institutions, then overly ambitious when the value system is concerned,” Tóth adds. everyone starts playing shortsighted, short-term strategies. However, they hope the results of the survey create awareness, They start building their own ways of conflict management are a launching point for discussion, and could spark further study, instead of relying on institutions, which is much more costly.” In especially at the university level. Felcsuti plans to organize media 17 the political sphere, the causal links might go both ways: while events in the future to raise more awareness about the negative political institutions are the least trusted (mostly for associated social tendencies. corrupt practices), the political actors also start playing short-term “We have mentality issues, and it takes decades to have changes AmCham strategies that creates more expensive operations for the whole you are able to perceive or notice,” he says. “But if you don’t start Hungary economy, Tóth adds. somewhere, nothing will happen.” ★

Economic competition institutional Confidence Under the lens of economic vitality,

another disconcerting result of the Hungarian Academy of Sciences 6.2 survey was the view toward economic

competition, which is viewed by many as a Central Statistical Office 4.5 “zero-sum game,” Felcsuti recounts. Many respondents said that you can only get rich Police 4.5 at the expense of the next person, rather than through cooperation, he adds. “People 4.3 really believe that the economic differences Hungarian National Bank are too big [between individuals], and the expectation that the state should come to National Financial Authority 4.2 your help is higher than other countries.” Within the study, participants were Hungarian judiciary 4.0 asked to agree or to disagree with

statements regarding getting ahead in Trade unions 3.8 society. The results showed that 80% of

interviewees agreed or partially agreed that Hungarian press 3.5 it is impossible to get rich in this country in an honest way; 75% agreed or partially Parliament 2.9 agreed that if you want to get ahead, you’ll be forced to break some rules. Also, 50% 2.9 of respondents agreed or partially agreed Opposition that if you work hard, you’re sure to get what you want, and only about 18% agreed Politicians 2.4 or partially agreed that there is equal opportunity for everyone in Hungary. Government 2.3

Tóth also finds this data troublesome. 0 1 2 3 4 5 6 7 “There are Hungarians who tend to believe Available Creating a Roma tourist options center

Life is slowly being turned around in tiny Bódvalenke, a village of 200 inhabitants, of which some 170 are Roma, almost all of them unemployed. Thanks to the joint efforts of an inspired Hungarian volunteer, Hungarian artists of Roma origin, and the local population, a steady trickle of tourists are starting to arrive to see nine huge and brightly painted frescoes that adorn the old village houses. Initiator Eszter Pásztor intends to change this hamlet – which is close to the Nature Reserve of Aggtelek, known for its famous caves – into a center of European Roma culture. by Runa Hellinga Business ★ h e n Pá s z t o r , a professional translator from from Budapest by car and a mere 30km from the Aggtelek caves, 18 Budapest, came to Bódvalenke for the first the main tourist attraction in the region. Besides, the long blank time, she knew virtually nothing about the living walls of Bódvalenke’s traditional long houses would make a perfect circumstances of many Roma. All she knew canvas for colorful frescoes. When a Roma acquaintance of hers AmCham W was that the images of Hungarian Guards marching in Roma happened to be pondering about exactly the same kind of idea, she Hungary villages disgusted her, and that she wanted to know more. She decided to push ahead. was outright shocked to see the squalor in the village. “There Initially, the inhabitants in Bódvalenke were not very was nothing; no running water, no gas, no jobs. The children ran enthusiastic, Pásztor remembers. Their first response was a around underdressed, in dirty and torn clothes. There was garbage firm “no daubing on our walls,” she says. Also, there were many everywhere. It was third world. And this was the same country in competing factions amongst the Roma, everybody accusing each which I was living my comfortable middle-class life,” she says. other of being unreliable, and the non-Roma residents – resentful of the huge influx of Gypsies over the past 20 years – were not thrilled Frescoes at all with any program that would benefit these newcomers. “We had some serious community-building to do,” she says. For months, she wasn’t able to get these images out of her head. The first positive turn came when a local coachman realized Then, a year ago, she remembered a holiday trip to Egypt, where that, through this project, he could maybe make a living by offering she had sat in a bus for two hours to visit a small desert village tourists a picturesque ride via horse-drawn coach to and from the famous for its painted houses. Why would something like that not train station in the neighboring village. So, he started urging other be possible in Hungary, she wondered? Bódvalenke is 2.5 hours people in the village to join the project. Also, with the help of a Roma artist involved in the project, they managed to convince people to clean up the omnipresent rubble in the village, thus overcoming the initial “it’s not my rubble” response Pásztor encountered. Just before last summer, the first frescoes were painted, all of them in a realistic style and with subjects taken from

Bódvalenke hopes to become famous for its painted houses. traditional Gypsy life and Roma folklore and legend, so as not to shock and estrange the villagers. “This painting with horses is the favorite of most villagers,” Pásztor says, pointing at a fresco depicting scenes of the peaceful country life. But once people trusted that “daubing” was not the right word for the art on their walls, the artists became bolder. A later fresco, for example, shows a dark Jesus-like figure surrounded by abstract faces representing the villagers, including the local usurer and a woman who works as a street prostitute to feed her four children. Another fresco is painted in remembrance of the spate of mysterious murders of Gypsies in villages close to the highway that took place in 2008–2009. And today, Pásztor says, young people who took classes in jewelry making last summer, and ★ Business villagers are standing in line to have their house painted too, while villagers who know everything about mushrooms, which are plentiful the first non-Roma inhabitant has now asked for a fresco, too. Pásztor around the village. “We can sell all these products in a new local wants to invite Gypsy painters from Spain and Italy to come and do shop. There are horse keepers, which opens possibilities for horse some frescoes next summer. riding, and some women are fantastic cooks, so we want to offer tourists the possibility to eat at their homes,” Pásztor sums up. She Local skills also invited an agriculture expert to do some research, and he says local circumstances are very suitable for cultivating a special kind of 19 But she doesn’t stop at that. She started a public Internet room berry that is much in demand in the pharmaceutical industry. in the village. She arranged for some families living in the most There are also plans to renovate the local manor house of unhealthy houses at the edge of village to move to more suitable Bódvalenke and change it into a guesthouse, but that plan probably AmCham premises. And she set up a cooperation with the Aggtelek National has to wait a bit longer as there just isn’t any money. Until now, Hungary Park management to build and exploit a nature trail leading through everything that was done depended mostly on volunteers and on the marshes surrounding Bódvalenke that are apparently of very the support of a few sponsors, whose names are honored on a special ecological value. Local people, who know the paths and colorful gate at the entrance to the village. “We can’t get EU funds, trails through these dangerous parts like the backs of their hands, as you have to prefinance everything you do, and we just lack the can be employed as tour guides. money,” Pásztor says. Pásztor also made an inventory of all the skills and knowledge This limits Pásztor’s possibilities, but certainly not her available in the village. “Some women used to work in a textile factory imagination. “Of course you cannot turn every village into a tourist that has closed down. We are setting up a clothing line based on attraction. But everywhere, one can do what we have done here: traditional Gypsy dress. We bought some industrial sewing machines, make an inventory of all available options. I’m convinced that, once and I asked a professional fashion designer for the designs,” she says. you start looking, every village offers many more possibilities than Also, there is a basket weaver and a wood-carver in the village, some one would think at first glance,” Pásztor says. ★

from 1710 Ft Mouse pad from 2290 Ft Cup from 1710 Ft UNIQUE T-shirt (white) from 2480 Ft souvenirs T-shirt (color) www.copycat.hu Puzzle (A4) from 1710 Ft from 1330 Ft Candle from 2100 Ft Bear with T-shirt from 1710 Ft Pillow from 560 Ft Fridge magnet from 560 Ft Key-ring Tennis T-shirt from 2880 Ft A country of “partocracy”

other challenges of similar weight. First, the state-planned economy Twenty years have passed since the had to be transformed to a traditional Western-market economy transition, and this milestone provides a good model. Second, members of the Hungarian society had to be perspective for an evaluation. Recently, more integrated into a plural democratic political system. Third, the elite faced the tremendous task of creating a new, independent nation, and more analyses have been coming to light and creating a new national identity as a foundation of the nation. about the “meaning” of the transition, and These necessary undertakings were not fulfilled completely, and many authors consider it as a model crisis, in its consequences are still impeding the functioning of the Third a sense. To a certain extent, we can agree Republic of Hungary. with those people who are talking about the Analyst views

★ mismanagement and imperfectness of the Party formation transition. by Tamás Kern, Századvég Institute 20 In our view, the root of the problem is the process of party formation, which has happened in a different way than in Western European countries with century-old traditions. Due to the AmCham a t u r a l l y , b e i n g problem-oriented does not mean radical quickness of the transition, we witnessed a kind of ‘elite’ Hungary that we do not appreciate the achievements, namely, party formation in Hungary. As a result, the structure of our party that the revolution was bloodless, that now we have system does not reflect the real Hungarian social structure, but Na working constitutional system, that civil rights instead, reflects the deep antagonism between different groups of prevail, that we have a stable party system, and that Hungary is a opposing intellectuals. The nature of these intellectual debates is member of NATO and the EU. At the same time, we cannot pass highly ideological and cultural. Still, the same ruptures (communist over the fact that the prestige of democratic institutions, and that of versus anti-communist; national-popular versus cosmopolitan- the parties, are continuously decreasing, and confidence in society urbane) divide party elites and their backing intellectual circles. has been constantly weakened throughout these two decades. This confrontation, largely based on emotional and personal Obviously, the transitional process put an almost unparalleled conflicts, unfortunately means that the different ideological task upon the elite: besides having to construct all the democratic factions view their differing group as enemies, not just opponents. institutions at a relatively quick pace, they also had to face many Considering these causes, a reserved and sometimes even hostile attitude towards party politics is anything but surprising. Moreover, this is a statutory social consequence. This negative consequence has been deepened continuously since the 2002 change of government. Thereafter, the patronage (i.e. awarding positions) has become widespread in the economy and society, not only in politics or administration. In the meantime, unfortunately, it has become commonplace that in the political sphere, particularly in party politics, myriad corrupt transactions are occuring. To state it clearly: Hungary faces political corruption in organized frames. This means that the political system itself allows political corruption (e.g. undue regulation of party financing). Moreover, the political system actually enforces corruption. Thus, corruption becomes an inevitable part of social relations, and particularly of the public life. ★ Business Hungary Kar-Szilv-angol 220 x 285 2009.11.16 14:44 Page 1

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KEMPINSKI - A COLLECTION OF INDIVIDUALS Getting ready for battle

Since September, the Hungarian political agenda has been dominated by the draft budget and debates on this issue. This is not only because of the economic crisis, but also because parliamentary elections are coming up in six months. by Kornélia Magyar, Progressive Institute

here is an interesting paradox which has never been of outbidding each other. But, it appeals to two groups of potential explicitly mentioned in the government’s official MSZP voters. One group comprises the rather market-oriented voters statements, but which permeates the discourse on next with a limited party loyalty who were attracted to the Hungarian year’s budget. Due to the financial constraints of the socialists by Gyurcsány’s reform rhetoric. The other group consists Analyst views T

★ current situation – caused not only by the letter of intent imposed of the more loyal core voters who had no motivation to vote after by the IMF, but also by the Hungarian financial system’s extreme repeated MSZP fiascoes and whose absence from the European 22 dependence on investor confidence – the government and the elections and some by-elections contributed to their party’s defeats. MSZP do not have the means to use overspending as election bait. Changing Fidesz strategy Thus, the key element of their strategy will be to communicate a AmCham technocratic image of “responsible, sensible crisis management”. While the MSZP is gradually drawing up its lines for battle, we Hungary Therefore, the upcoming budget will indeed be an “election-time have seen substantial changes in Fidesz’s strategy during the fall budget,” as opposition party Fidesz says, but not in the traditional term in Parliament. During the last two parliamentary periods, the sense of being excessively freehanded. Rather, it will focus on fiscal government has rightfully criticized the largest opposition party for discipline, sense of responsibility, and austerity, because these values their knee-jerk, destructive rejection of all government proposals are not just the key elements, but the very basis of the government’s without having any real concepts of their own. However, the party image. Such a strategy is much less attractive than the usual strategy leader and other prominent party representatives are now airing more and more details of their plans, should they come to power. It was high time they did so, since their political opponents had been shifting their attacks from allegations of lacking concepts to allegations of planning a “revolution by means of public law.” Based on anti-democratic features of the Orbán-led government in 1998–2002 and on imprudent statements by Fidesz representatives, there have been speculations for months on Fidesz’s plans for governing with a two-third’s majority, which the party might obtain. There have been allegations of Fidesz planning to change the law on franchise and citizenship, expanding the power of the head of state, introducing a presidential or semi-presidential system, limiting the competences of Parliament, and imposing right-wing control over the media. Thus, Fidesz’s strategy is to keep the Bajnai government under constant fire morally and politically and, while not wasting too much time on “boring details,” to try to present itself to undecided voters as a modern, down-to-earth political force ready to meet the current challenges. The majority of Hungarian and international analysts consider Orbán’s rhetoric to be populist and even demagogic, and agree that Fidesz will have to stick to the current government’s financial and economic policies if it wins the elections. But, the latest comments by Fidesz indicate a very different route. Orbán himself was the first to insinuate that the government has published false data in its draft budget for next year. But from the context, it is clear that a much higher budget deficit would not be the result of the government’s incorrect data, but rather of Fidesz’s radically different economic policies. ★

The secret of success Interview with ITD Hungary’s CEO György Rétfalvi

recent study by the World Bank ranked György Rétfalvi, Chief Executive of the organization, the website of the Hungarian Investment was also recently re-elected president of the World A and Trade Development agency 12th out Association of Investment Promotion Agencies. In of 213 investment promotion agencies, while ITD an interview with Nicholas Nikol, Rétfalvi says he Hungary was rated the 14th-best agency overall. believes the secret of ITD Hungary’s success is largely due to a growing awareness of the country’s strengths. In addition to keeping old investors, Hungary has proved itself capable of attracting increasing numbers of new investors with its wealth of untapped economic potential.

– N.N.: Hungary is a small country, yet its investment promotion agency ranks up with the largest. Were you surprised by the success of ITD Hungary, or do you see this as a natural reward for your hard work?

Gy.R.: I knew we were working hard and that our results were good, but this ranking came as a surprise even to us. But there’s no denying the team at ITD Hungary has delivered excellent work. In 2009 alone, investments worth more than Ft 70 billion have been made in Hungary, creating some 6,000 new jobs. ITD Hungary is currently in negotiations with more than 100 potential investors with projects that could bring in up to Ft 1.5 trillion and generate 16,000 György Rétfalvi new jobs. Of these investors, 32 have already committed to realizing projects in Central and Eastern Europe. If we include in Hungary, guaranteeing Ft 500 billion of capital reinvestments, the total value of American FDI is inflow and more than 8,000 jobs. Despite the global as much as $9 billion. There are currently around recession, it certainly cannot be said that Hungary 600 American companies registered in Hungary, has come to a standstill; we are actively following and when you add small agencies representing US every avenue for development. firms or products, this figure may reach 1,000. This large presence is grounded in the fact that investors – N.N.: How would you describe Hungary’s have a growing confidence in Hungary. Those that economic relationship with the US? are already here and know the country are happy to engage in further development, while Hungary – Gy.R.: From both an export and a direct investment also offers exciting opportunities to new, long-term standpoint, the United States is one of Hungary’s investors. In addition to its good geographical location key partners. The volume of bilateral trade in goods and favorable tax regime, Hungary’s key asset is its and services was second only to China in 2008, skilled and relatively inexpensive workforce. and exports to the US exceeded those to any other country outside the EU. In recent years, both exports – N.N.: How do you see Hungary’s future? Can and imports have grown steadily. Of the countries this trend continue, and is it possible to attract in Central Europe, Hungary has the largest export still more investors? in terms of both value and share of total exports to America, a position it has maintained consistently – Gy.R.: I believe so. Hungary has committed itself to for several years now. Due to the recession in the quality and development. This is evident to our foreign American economy, this pattern was broken in partners and supported by economic indicators August 2008 when the lowest monthly figures were and international surveys. We have good reason recorded in nine years. Despite this, annual data to be optimistic. ITD Hungary will do everything in remained remarkably strong, and trade volume grew its power to meet international expectations and by between 7% and 8% on a month-on-month basis ensure Hungarian companies find success abroad. in the final quarter of the year. We organize business meetings for various sectors on a weekly basis and help companies exhibit at – N.N.: What does Hungary export to the US? international trade shows. These are the kinds of initiatives that pay for themselves several times over – Gy.R.: Our key exports include components for in the medium term. Last year, we invested Ft 620 data processing systems, a variety of chemical million in promotions of this nature and saw growth compounds, and transport vehicles and parts. in exports of around Ft 32 billion as a direct result. Some 90% of exports are derived from multinational companies operating in Hungary. Car components – N.N.: How do you see the coming year account for the majority of our imports alongside developing for the Hungarian economy and, integrated circuits, pharmaceuticals, gas turbine more specifically, for TDI ? parts, computer components, glass, medical devices, agricultural equipment, and devices to – Gy.R.: Although our resources will be limited in measure pressure. the coming year, our plans are no less ambitious. Several challenges await, not just in view of the – N.N.: As far as I am aware, more American upcoming election and its impact on international multinational companies have settled in Hungary opinion, but also with regards to the consolidated than anywhere else in the region. What is the structure of the company following the economic reason for this? crisis and our efforts to stay ahead of changing investor culture and rapidly evolving export markets. – Gy.R.: You are quite correct; Hungary has the I enjoy challenges, and therefore, look to the future largest number of American investors of all countries with confidence. (Advertorial) News in review

Budget deficit György Matolcsy and reforms

While the Bajnai government succeeded in getting its 2010 budget proposal accepted by Parliament, opposition party Fidesz sent out mixed signals about its plans regarding the budget deficit and its possible economic program if elected next spring.

n a n i n t e r v i e w in w e e k l y newspaper Figyelő, Prime Minister James Morsink said at a press conference on November 16. Gordon Bajnai said that Hungary’s deficit target for this Nevertheless, he conceded that the deficit could rise slightly over October/November in review

★ year and 2010 can be maintained, unless the economy takes 3.8%, as is also projected by the OECD, the EU, and the MNB. I another negative turn. He also stated that the next government The EC delegation visiting Hungary said in a statement that 26 must continue implementing reforms to successfully transform the the “fiscal consolidation has to be continued in order to further country’s tax system, health care, and state railway MÁV. strengthen the sustainability of Hungary’s public finances, put The 2010 budget proposal drew heavy criticism from main public debt on a declining path, and create the necessary room AmCham opposition party Fidesz. For example, the party’s economic expert for more growth-oriented policies.” Hungary György Matolcsy said at a business forum in November that he Obviously, these comments also have an impact on Fidesz, projected next year’s general government deficit to come in at which is widely expected to take over government after elections in 7.3–7.5% of GDP, differing from the government’s target of 3.8%. spring 2010. The party has repeatedly said it wants to renegotiate Mihály Varga, Fidesz’s deputy chairman and financial expert, said a higher budget deficit (6% or more) with the IMF and the EU, and that the 2010 budget bill contained “deficit factors” in connection it has promised to lower taxes, create new jobs, and scale back with national railways MÁV, Budapest transport company BKV, several budget cuts that were introduced by the Bajnai government. and hospitals, among others. For example, in an interview on ATV television in October, Fidesz But visiting delegations of the IMF and the European leader Viktor Orbán repeated his promise for big tax cuts, saying Commission (EC) disagreed and said they could not support any he would not pin a precise figure to the tax cut in 2010 right now, economic policy that would propel the country’s budget deficit but it would be substantial. He also promised, as many times before, to around 7% of GDP. “We met with Fidesz leaders who said to create 1 million jobs over ten years. the deficit could rise to 7%, but as we see it, the 3.8% general In a reaction to the IMF delegation statement, Varga, Fidesz’s government deficit is achievable in 2010,” IMF delegation leader deputy chairman and financial expert, said on November 18 that his party will not pursue a policy that would deliberately raise the budget deficit, but that opinion is not in line with statements from other high-profile Fidesz representatives. For example, Matolcsy repeated on InfoRádio on that same day that he doesn’t trust the government’s budget figures, and that Fidesz wants to renegotiate the budget deficit with the IMF. Earlier, Matolcsy had also outlined some of the reforms Fidesz wants to implement. He said that the party plans reforms of the tax and contribution system, the higher education system, health care, the local government system, BKV, and MÁV, and that it wants to reduce the administrative burden and introduce a new package of anticorruption measures. Matolcsy also argued for lower interest rates and for state incentives for direct investments by Hungarian companies abroad. In his view, the health industry should provide the main engine of growth for Hungary. Construction, energy, agriculture, water and waste management, car manufacturing, and business services could also serve as economic drivers, he added, conceding that there was little fiscal room for maneuvering, James Morsink but monetary tools and EU funding could be used to perk up the economy. ★ BP service center

oil company BP is to move 260 jobs to Budapest after laying off hundreds of workers in Germany, MTI reported, quoting a German newspaper. It was announced in March that BP is setting up a service center employing around 1,000 people in Budapest. BP’s

Richard Hookway said the Budapest service center will be more ★

than a simple call center; it will provide comprehensive business in review October/November and financial services to customers. ★

Party financing initiative fails

Transparency International (TI) and Freedom House will not recommence the failed cross-party talks on campaign funding which took place early October. The groups had drawn up a compromise proposal, based on earlier law Institute of New Economic Thinking proposals by both Fidesz and MSZP and aimed at breaking the deadlock on this issue (see Business Hungary July/August). Hungarian-born billionaire philanthropist George Soros will But according to the two NGOs, Fidesz gave no substantive spend $50 million over the next ten years to set up and operate response to their compromise proposals and they had to a new economic think tank in Hungary. The Institute of New abandon the initiative. Both organizations underlined that they Economic Thinking (INET) will aim to renew economic theory, 27 will pay special attention to next year’s election campaigns carrying out educational as well as research tasks and will be and will appeal to the general public if they identify abuses. financed through the CEU. A first conference will be at King’s Corruption influences 66–75% of Hungarian public College, Cambridge, next April, while later CEU could also be AmCham procurements and is estimated to push prices up some home to such workshops. Hungary 25%, a recent study by economic research company GKI The creation of INET comes in response to the policy commissioned by the Public Procurement Council showed. challenges presented by the economic crisis and the need There is general agreement that the opaque regulations to develop fresh approaches to economic theory. Soros is a governing party and campaign financing are the roots longtime critic of classical economic theory. INET’s founding of corruption in the Hungarian economy too, said GKI Advisory Board members include many well-known economists chairman András Vertes. Last year, public procurements in and Nobel laureates such as George Akerlof, Joseph E Stiglitz, Hungary were worth about Ft 1.6 billion. ★ Willem Buiter, Jeffrey Sachs, John Shattuck, and Yu Yongding. The Institute will make research grants, convene symposia, and establish a journal. ★ In partnership with

Third film studio Base rate at 6.5% Raleigh Studios is building a $40 million film studio complex in Rákospalota (Budapest XV), set for completion in April, Hungary on november 23, the MNB’s Monetary Council voted to Around the Clock reported. “This is going to be the finest studio on lower the base rate to 6.5%, the lowest level since June the continent: it will be truly run like a Hollywood studio,” company 2006. MNB Governor András Simor said council members president Michael Moore said in an interview with the Los Angeles voted by a “decisive margin” to reduce the rate by 50BP. Times. Raleigh Studios Budapest will include a 45,000 square foot Because of the drawn-out recession, there is no inflationary “superstage”, a 15-acre site for outdoor sets and a training school for pressure in the economy, and the CPI will significantly film workers. Raleigh operates nearly 40 studios in the US. ★ undershoot the mid-term inflation target, Simor said. The bank lowered its inflation projection for 2011 to 1.9%. “Interest rates may be reduced further, if this does not threaten the inflation outlook and if shifts in perceptions of Pannon University risks associated with the economy allow it,” according to a bank statement. Council members at the meeting agreed Pannon University in Veszprém is to set up a knowledge that risks to financial stability had declined, increasing the center through and investment of Ft3 billion. The center, on room for rate cuts, but some warned that financial markets the site of a former children’s hospital, will carry out research were still fragile, and that there could be a second leg of the and development in the areas of bioenergy, mechatronics, financial crisis in Europe. ★ information technology, and waste utilization. ★ CEE in review Croats in Italy returning home

Some 40,000 Croats working in Italy are being forced to return home because of the financial crisis. Most of them had lost their jobs and had no other choice than to return home to Croatia. The Italian unemployment rate has risen to 8.9%, and wages have dropped drastically. Only around 25,000 Croats are working legally in Italy. The rest work illegally, which makes their position even worse considering that they have no right to a pension. The average monthly salary for a Croat in Italy was around €1,000 before the financial crisis and has now dropped to €500–600. (Croatian Times) ★

Greece, Romania, and Bulgaria

October/November in review Unemployment in Slovakia most corrupt

★ The Slovak labor market is battling the problem of long-term Transparency International (TI) ranked Greece as the EU’s 28 joblessness, which, according to Slovak Academy of Sciences most corrupt member, along with Bulgaria and Romania. The (SAV) economist Pavol Kárász, will not fall until at least 2012. three nations share 71st place in the Berlin-based international “It’s a long-standing problem in Slovak economy. Slovakia is watchdog’s annual Corruption Perceptions Index (CPI), covering AmCham among the countries with the highest long-term unemployment 180 countries and territories. Each of the four received a score of Hungary in the EU,” he said. Turning to the overall unemployment rate, 3.8 points on a scale of zero (highly corrupt) to ten (low levels of which stood at over 13% in October, Kárász said he can’t see this graft). Bulgaria, which was singled out as the most corrupt country falling until 2011, and expects the local job market to continue within the EU last year, has improved its marks by 0.2 points over to be adversely affected by the crisis. (Slovakia Today) ★ the past 12 months. By contrast, Greece has lost 0.9 points of its grade of 4.7 in 2008, when it was ranked 57th in the world. Experts blame “systemic weaknesses” that the country has failed to address. “Greece’s poor score shows that joining the EU does Bulgaria not automatically translate into a reduction in corruption,” TI said. This year, Romania again scored 3.8, but moved down one spot to

Bulgaria’s Cabinet will go ahead with plans to deposit a small 71st on the global table. Bosnia and Herzegovina (BiH) remained portion of its fiscal reserve with local (foreign-owned) banks in the most corrupt country in the region, ending at 99th place. “At a an attempt to lift the economy out of recession, Finance Minister time when massive stimulus packages, fast-track disbursements of Simeon Dyankov said. “We could transfer up to 20% of the public funds, and attempts to secure peace are being implemented reserve from the central bank to commercial banks where it would around the world, it is essential to identify where corruption blocks earn a useful interest income,” Dyankov said. Dyankov expected good governance and accountability, in order to break its corrosive that demand for loans “will soon be huge.” (Sofia Echo) ★ cycle,” TI Chair Huguette Labelle said in Berlin. (SETimes) ★

estonia on track for euro

Electric cars in Poland estonia has set its sights on adopting the euro in 2011, following

an IMF report released in October praising the country’s fiscal in cooperation with German energy giant RWE and Green management. “A full-fledged crisis has been avoided due to Stream, a Polish company working to create an electric-car existing buffers and a determined response by both the public market in Poland, the city of Warsaw has recently opened and the private sector,” an IMF press release said. “As a result the first charging point in the capital for electric cars. A total of present and past efforts, euro adoption in 2011 appears within of 130 other charging points are expected to pop up in and reach,” it reported. Estonian politicians were quick to embrace the around the Polish capital by the middle of 2010, and four other news, expressing confidence that they would be able to fulfill the Polish cities will get a total of 200 charging points between Maastricht criteria – which govern countries aiming to join the them. “The experiment will run until mid-2011. Then we euro zone – and adopt the currency within the next two years. The would like the charging stations to be commercialized,” says Estonian Central Bank has also confirmed that the country could Jacek Janowski, president of Green Stream Poland. (Warsaw be ready to adopt the euro in 2011. (Baltic Times) ★ Business Journal) ★ Guardian Orosháza Kft. – Hungarian member of Guardian Industries Corp., one of the world’s leading flat glass manufacturers – launched a revolutionary coated glass product for windows recently: “ClimaGuard® Solar”. This special glass, coated with extremely thin, practically invisible layers of various metals, ensures energy savings all year round:

• In the winter it reflects radiant heat back to the interior of the building, cutting heating costs by half compared to traditional, (non-coated) double-glazed windows. • In the summer the coating protects the interior against warming up by the rays of the sun, reducing air-conditioning energy consumption by approximately 45%. In addition, the surface temperature of the inner glass pane will be lower by 4 degrees. In windows glazed with ClimaGuard® Solar, excellent performance is coupled with high transparency and color neutrality. For its innovative contribution to energy saving and environmental protection, the product was honored with the prestigious Hungarian Product Award in 2009.

Located in the city centre, on 250sqm, one of the biggest galleries offering a great range of antiques, paintings, graphic art, silver, jewellery, porcelains, ceramics, glass, sculptures, furniture, lamps, carpets and souvenirs for collectors, art lovers and dealers at great prices. HUGE CHRISTMAS SALE IN DECEMBER! www.auctiongallery.hu www.guardian-europe.com [email protected] Open: Mon. - Fri: 10.00-18.00 Weekends: 10.00- 16.00. Pest V. Váci utca 36. T: (+36 1) 266 8374 Tales of a city “Imagine Budapest” shows hidden sides and sites

“Imagine Budapest” organizes alternative city walks where people are taken to places they would never find on their own, shown sides of Budapest a random visitor would otherwise overlook, and taught about the major influences to modern Budapest. The tour company, established by art historian Katalin Káldi and her sister Emese, is the result of cooperation between an enthusiastic staff who put all their love for the city and their professional knowledge into the development of these city walks. by Runa Hellinga Culture and lifestyle n t h e a m e r m a y e r á r o l y

★ K K square, close to in the city? No!” one councillor argued. His colleagues agreed with Budapest’s City Hall, stands a lonely elm. It is a rare him, probably because tree-lined streets were considered a typical 30 survivor of the Dutch elm disease that finished off feature of small provincial towns. O most elms in Hungary and large parts of Europe. Although later on other councillors acknowledged the need for The giant tree shades the small square, offering some coolness and trees, the center of present-day Pest still can’t boast an abundance AmCham fresh air in a city center not known for its abundance of greenery of greenery. But there are more verdant areas than meet the eye, Hungary and parks. In fact, it is that lack of abundance that saved the tree, as most of them well hidden in courtyards and gardens normally there was no other elm in the vicinity from which it could contract closed to the public. Some of these hidden places can be visited as the disease. part of the Secret Garden tour, one of Imagine Budapest’s offers, As Imagine Budapest tour guests will learn, present-day under the guidance of landscape architect Júlia Szekeres. inhabitants of inner Pest are not the first ones to complain about And secret those gardens certainly are. Few would have the lack of greenery in the city. It was Count István Széchenyi who probably guessed that there is a vast green area right in the center first raised the issue in the 19th century. In those days, Pest’s dust of town, just behind the huge Bauhaus building at the crossing of and mud was as infamous as London’s smog. Széchenyi proposed Károly Boulevard and Rákóczi Street. Today, the huge communal planting trees to enhance the city’s air quality. That idea was garden almost resembles a small wood, which first started sprouting vehemently rejected by the city council. “What identifies a city? from seeds dropped by birds and flourished through decades of Houses. And what identifies a wood? Trees. So, do we want a wood neglect during which time numerous trees and shrubs took root, says Szekeres. The centerpiece of the garden used to be a large symmetric pool in which the modernist Bauhaus building was reflected, but the pool was filled up with rubble after the Second World War. As she guides participants from one garden to another – including an old green courtyard with one of the few surviving old water pumps in the city, roof terraces, cloister gardens, and a shady tea garden – Szekeres has many tales to tell about the city. For example, in the old days, Pest

“What made Budapest into the city it is today.” ★ Culture and lifestyle

depended on water carriers selling water straight from the Danube, explains, the content of a tour also changes depending on the and how Magyar Street got its name from an ethnic German called questions of participants. “Every group is different, so there are 31 Ungar (Hungarian in German) who owned most buildings in the always surprises, and tours keep developing based on the remarks former red-light district and whose name was then Magyarized. people make,” she says. Along the way, she also points out numerous small details and Most walks are still conducted only in Hungarian, but the AmCham tells about the developments of Pest’s green areas. One of the stops company has an English-language website and is busy developing Hungary during the tour is a hidden, well-kempt public park behind the former English-language tours. Three of the city walks have now been city palace of the Károlyi family, today the Petőfi Literary Museum. translated, but as Szekeres points out, foreign tourists are not their In the 19th century, the park was a private garden belonging to the first target audience. “These are not the kind of tours the average palace and one of the rare green areas within the city walls of Pest, tourist who visits Budapest for the first time in his life is interested the present-day 5th district. Occupants of the surrounding houses in,” she says. But they are very worthwhile for people who have been were willing to pay dearly for the leafy view from their windows, living in Budapest for a longer time and would like to deepen their proof that citizens took a different view on urban trees than city knowledge of the city beyond the obvious. These tours do indeed councilors. The garden was almost lost for the city when Count offer a glimpse into hidden parts of the city, but also into the city’s Mihály Károlyi, the same who in 1919 became the short-lived history, its tales, and its people, past and present. ★ president of the first Hungarian republic, wanted to sell the place to finance his typical Hungarian dandy lifestyle. Recognizing the value of Pest’s only green space, his wife successfully opposed.

Thorough research

Imagine Budapest’s tours concentrate on interesting, not necessarily beautiful spots. As Emese Káldi explains, the idea is to show who and what made Budapest into the city it is today, and therefore, matters like beauty, ugliness, or quality of life don’t really count. What drives the people behind Imagine Budapest is their own curiosity about the city. For instance, Katalin Káldy got involved when, while teaching arts at a school, she found she was unable to tell her students anything about the building they were occupying. It was then that she realized how little she actually knew about the town in which she was living. Besides the Secret Garden Tour, walks of Imagine Budapest include one along Pest’s houses of worship, a walk that concentrates on the decorations of Budapest’s building fronts and what these tell about those who built the houses, and a walk along Buda’s Fő Street, which is essentially a walk along Buda’s historical timeline, as the street is lined with buildings from many centuries. Every tour is the result of thorough research into the subject, but as Szekeres András Török’s Budapest Seven great Christmas gift ideas

Don’t commit the terrible mistake of giving your expat friends bottles of Unicum or Tokaj wine, or extra hot red paprika in a cloth bag for Christmas. All the others will do that. The following ideas will put you ahead of the pack.

The White King This phenomenal novel by young Hungarian writer György Dragomán is a dark and funny tour de force from a child’s perspective, set in Transylvania during the Ceausescu regime. The fun, unpredictability, and originality of Huckleberry Finn, no kidding. It was translated into about 30 (!) languages.

A 1930s photograph Several of the world’s most renowned photographers came Culture and lifestyle

★ from Hungary, but there were also lesser-known but worthwhile Something Old: contemporaries who stayed behind. Beautiful modern prints of some Alexandra Book Café 32 of their photographs are now available at very reasonable prices On November 9, the renovated Paris Department Store at from the Mai Manó Ház bookshop, great for home decoration. If Andrássy Boulevard 39 became accessible to the public. The your friend is a collector of art, you can find great vintage copies in inward-looking grand café is in the lavish neo-Renaissance AmCham Vintage Gallery. space that was built in the 1880s as the ballroom of the Hungary Theresa Town Casino. The meticulously restored grandiose A Hungarian Quarterly subscription café can host about a hundred guests at a time. This is a serious review edited in Budapest, with a lot of fun reading, from poems and short stories to cultural, historical, and social articles. It is well designed and an English-language entrance to Three Hungarian films a “culturally overdeveloped country.” Don’t be deterred by the fact Young Hungarian filmmakers have produced some great movies in that the paper can now be accessed through the Internet. It is not the last ten years. You can buy three of them on DVD, with English the real thing – in this case. subtitles, and put them into a fancy box with a tailor-made cover. I would include Kontroll (a hilarious comedy on the daily life of metro controllers), White Palms (the bildungsroman of a talented gymnast Something in the late totalitarian Hungary) and Taxidermia (a complex, poetic, New: and funny history of three generations in Hungary). Alexandra Bookshop The Bartók new series The ground and Probably the greatest artistic effort in this part of the hemisphere, first floors of the a fresh and new series of recordings of Béla Bartók (1881–1945) Paris Department based on the genius of Zoltán Kocsis, pianist and conductor. So far, Store are now 15 CDs were produced; many of them won prestigious awards. The occupied by series is halfway finished now. the book and wine shop of A cinema card the Alexandra Cirko-Gejzír cinema, a 15-year-old and highly original place on chain. The space the Pest riverfront, is an importer of some of the most original is worthy of European movies. A cinema card costs some €70, and allows you Rizzoli (New York) to visit any number of times (Pest V, Balassi Bálint u. 15–17). or Hatchards (London): an A personal tour elegant, spacious, Expats are probably well aware of the usual sights, and they are happy interior likely to know the “hidden treasures” like “The Small Museum Tour” complete with and the like. Instead, give them a choice of itineraries based on your minimalistic design personal life: neighborhoods you have lived in, dreamed to live in, and pretty lights. women you went out with, etc. With a little planning, you can put together a great tour. ★

Restaurant 67 The surprise of the year www.diningguide.hu

of the cauliflower. The consistency of the chicken thigh is perfect: juicy and fresh. It is only a slight exaggeration to say that the sauce Culture and lifestyle

★ concentrates an entire wine region – or at least a good year, namely the exquisite wines of 2007 – into a single experience. There’s no 34 stopping now. What will the chef think of next? The roast lamb – thin slices of leg of lamb – with ragout of Restaurant 67 is located in one of the patrician small slate-green Puy lentils and truffle oil potatoes is the answer. AmCham houses in the old town of Székesfehérvár. With The meat is close to perfection, although it shows signs of dryness Hungary its thick rubblework walls and grand archways, and its crust lacks character as if it hadn’t been singed long enough it is not only a safe haven which has stood to seal it, and part of the moisture was lost. It is flavorful and tasty, the test of time, but it has also, in the past few especially the lentils thickened with small squares of beef tongue. The three potatoes, even with truffle oil in their skins, didn’t make months, become a venue for sophisticated the grade, perhaps because their skins were slightly wrinkled. gastronomy. by Ted Aprajev Next up is the pre-dessert, the mousse au chocolate made from the “Abinao Grand Crus” chocolate bars of French chocolate- maker Valrhona, which didn’t decorate my plate for too long since h e i n f o r m a l , friendly service is fast, subtle, and it was irresistibly light, yet richly chocolaty. It was one of those rare conscientious. The main course sets a high standard: cod occasions when I could taste the natural flavor of chocolate. with warm polenta and rucola oil. The fish has a perfect, Finally came the last dessert, the “67” cherry tart by László Tnoble flavor. It is perfectly cooked with slightly crisp skin. Mihályi, which was a worthy finale, considering the fact that it The polenta is creamy and undisturbed by the rosemary flavor, wasn’t easy to outdo the pre-dessert. It was crisp, tender, and fruity, which contributes a rustic feeling. The dish is brought to life by the just like a real Mihályi dessert. exceptional, almost corn-like rucola oil that is placed on the plate It was a sad farewell. The leading restaurants of Pest have a in a single line. The real effect is achieved by the combination of all serious rival. It’s also a great pleasure to have experienced all this three elements, when the rucola, fish, and creamy polenta melt into in a country town, where under the care of Zoltán Herczeg, who one another. Although it could be considered unusual to mention jokingly refers to himself as a ‘gastromanager’, and chef Attila intelligence in connection with food, this is what comes to my mind. Mógor, 67 is getting praise even from the locals. ★ With great anticipation, I then tried the cream of celery and sweet potato soup with foie gras, and it didn’t disappoint. It is a Dining Guide examines the quality and level of ingredients, fantastic, dual-flavored cream, which discretely gives the taste tech­nologies and creativity of the kitchen, ambiance, presen­ of celery while still allowing the veiled sweetness of the sweet tation, service, and the relation between enjoyability and price potato to come through. The vanilla foie gras medallion was also level, all according to professional standards. After several appetizing, though it could have had a stronger character in this visits, the restaurant is then rated an average on a ten-point delicate arrangement. scale. (Restaurant 67 was visited only once). Then came one of the high points of the evening: the chicken thigh ‘mignon’ with wine sauce and cauliflower purée. I appreciate the classic three-piece composition. Part of the chicken thigh in a Restaurant 67 light gelatin form winds around, resting on the creamy sauce made Székesfehérvár, Jókai u. 1-3. from Loliense wine, savoring every refined flavor and taste in small T: (+36 20) 951 8488 drops. The third part is the cauliflower purée in which the taste of Open: Mon–Sat 11:30am–11:30pm horseradish springs out unsuspectingly and complements the flavor December/ Happenings january

“BEAUTY OF ALCHEMY” EXHIBIT Until March 15

Renowned for concocting gracefully mystical imagery, 16th- century Italian artist and alchemist Parmigianino was a pioneer of style-focused Mannerism, shifting the aesthetics of the Renaissance ★

era from naturalistic conventions toward perspectives of the bizarre. Culture and lifestyle While this Parma-born visionary is best-known for his colorful paintings, he was also a revered draftsman and is considered the Restaurant 67 first major artist from Italy to take up etching, carving out a fruitful collection of prints and drawings now on display at the Museum of Fine Arts (Pest XIV, Heroes’ Square); see www.mfab.hu for details. ★

THE NUTCRACKER December 5, 6, 13, 25, 26 – 11am December 2, 3, 9, 10, 16, 17, 27, 29 – 6pm

The country’s best ballet dancers bring this Christmastime 35 fairy tale alive to Tchaikovsky’s beloved score at the Hungarian State Opera House (Pest VI, Andrássy út 22); view www. opera.hu for info. ★ AmCham Hungary

GHYMES CHRISTMAS CONCERTS December 15 – 2pm and 7pm Petőfi Csarnok

This festive folk band plays Christmas classics with a modern edge, rooted in Central European traditions, at the Petőfi Csarnok (Pest XIV, Zichy Mihály út 14); log onto www.ghymes.hu for info. ★

BUDAPEST JAZZ ORCHESTRA December 15 – 7:30pm

Enjoy swinging season’s greetings from this 17-member band playing holiday tunes with Liberian-German siren Pat Appleton, all on the IBS Stage (Buda II, Tárogató út 2-4); see www.bjo.hu to learn more. ★

NEW YEAR’S EVE BALL AT THE OPERA December 31

Dress to the nines and welcome 2010 in grand style at Hungary’s most lavish “Szilveszter” celebration – it begins with a gala concert featuring the Budapest Philharmonic Orchestra, followed by a jubilee dinner catered by Gundel Restaurant before the customary New Year’s champagne toast at midnight, preceding dancing on the stage to the music of a live band until dawn, all amid the opulent glory of the Hungarian State Opera House (Pest VI, Andrássy út 22); visit www.viparts.hu for program and ticket information. ★ Conference and golf teambuilding in Autumn The Pólus Palace Thermal Golf Club Hotel is the most attractive golf-, wellness- and conference hotel in the close neighborhood of Budapest, which provides a quiet place for different programs, like business meetings, lunches, press conferences, and other gatherings. The hotel is located on a fresh, green hill, surrounded by rich forests, only 30 minutes from downtown Budapest. This is a fascinating place, where the sophisticated style joins friendly athmosphere in a professional harmony. The elegant and comfortable rooms of this 5-star hotel are  tted with all modern conveniences. The athmosphere, elegance and technical equipments of the conference halls inspire the participants of the different conferences, seminars, trainings.

Accomodation: Room with single bed: 20.000 Ft Room with double bed: 25.000 Ft Our rates are quoted in Ft per room per night, including the related taxes and rich buffet breakfast.

Conference-price for a whole day: 12.900 Ft/person Conference-price for a half-day: 8.900 Ft/person The package contains: The package contains:

• Usage of the conference hall all day with basic equipment (pro- • Usage of the conference hall for a half-day (max. 4 hours) with jection screen, 1  ipchart) basic equipment (projection screen, 1  ipchart) • Free wireless internet connection in the conference halls • Free wireless internet connection in the conference halls • Freshly brewed coffee, tea specialities with lemon, honey and • Freshly brewed coffee, tea specialities with lemon, honey and milk; home-made cookies in the forenoon milk; home-made cookies in the forenoon • Buffet lunch • Buffet lunch • Freshly brewed coffee, tea specialities with lemon, honey and • A bottle of soda or mineral water during the coffee breaks milk; home-made cookies, fresh fruits and appetizers in the • Relaxation in our Kerubina Wellness & Spa department after the afternoon conference • A bottle of soda or mineral water during the coffee breaks • Relaxation in our Kerubina Wellness & Spa department after the conference • Extra: 50 minutes golf-training with presentation

The offer is available only with at least 20 participants. The room prices are available only with the conference package.

Purchaser’s allowance: by reserving at least 50 nights during the offers validity, we present you a voucher for a 2 nights stay in our hotel.

The offer’s validity: from September 2009 – 30th November 2009. To order the Pólus Palace Conference Package, please send us a message to [email protected] or call us: +36 27 530 520. Pannon keeps High hopes investing and growing ★

for Hungary AmCham: Patron interview

You can sometimes judge a book by its cover, according to more rollout and investments, Jensen sees a very good outlook for Pannon’s CEO Anders Jensen, referring to “Pannon House,” the the telecoms market in Hungary. company’s new high-tech looking, energy-efficient facility on the Anders Jensen came to Pannon, owned by Norwegian-based outskirts of Budapest. “We are very happy with it for a number of Telenor, from Grameenphone (another Telenor subsidiary) in reasons,” he says. “It’s something very different from what we had Bangladesh, and prior to that, Vodafone with roles in Sweden, the before and also reflects a little bit the company that we’d like to UK, and Italy. “It’s been a good ride for me. Telenor has a clear be, going forward in environment, new technology, and everything growth profile. I’ve had the opportunity to work in an emerging surrounding that.” market – which is fundamentally different from anything I’ve ever It’s a forward-looking attitude in a telecom market that Jensen experienced before – with enormous growth.” describes as challenging. “It’s an interesting combination of a He says that Hungary has been nice as an acquaintance for very mature and an emerging market, in one.” In terms of core him so far, but recognizes its challenges and how AmCham can voice, he admits there’s not much movement in Hungary – the help the country with these. “Given its strategic position, AmCham result of fierce competition among the players in the Hungarian has an important role in attracting FDI to Hungary and driving 37 market. “On the data side,” says Jensen, “broadband is a growth debate here on what kind of improvements we need to see in the market for us and has increased by 3% for us over the last three corporate landscape for those investments to take place. When months, which is similar to what we saw with GSM growth six to things may be lagging a bit behind, it’s important for us to help AmCham eight years ago.” the country host a more appetizing commercial landscape,” he says. Hungary That’s good news in the context of the global economic crisis, “We’re industrious and have high hopes for Hungary. We believe in which he contends is quite unique. “This is something we haven’t its foundations, even though it is easy to play a negative tune if we experienced in 70 or 80 years, so it’s difficult to know what to make think of the macro financial challenges. We must rise above these of it. We are wondering ‘Have we gone into a second phase?’ One and drive change.” ★ thing that has been sort of communicated a lot is that telecom or mobile telecom has largely been protected from the impacts of the recession, and now we see that clearly that’s no longer the case – we are feeling the pinch from the recession. Maybe not as much as other industries, but still, it has started to hit our top line as well. Opportunities do arise, but you must be agile, you have to think about things in different ways. As consumers’ buying power is reduced in this context, we must be on our toes.” He says financial agility in these times is crucial, “but if you lose valuable assets, then you can end up with problems in the future.” In terms of Pannon’s commitment to heavy investment in the industry to enhance the capabilities of mobile technology, the company is here to stay. “The ICT sector plays an important role in the way out of it, because we’re in an investment-heavy industry, and we lead the way for many other industries. We need to keep investing and growing, because that will keep the wheels turning – and that’s exactly what we’re doing.” If the market is slightly Anders Jensen deregulated in the next year, allowing for Conference for new labor code a success

“With this conference, we succeeded in raising the issue of the need for a new labor code in Hungary. It has been put on the public agenda, even though some members of the National Interest Reconciliation Council (OÉT) said it is not topical,” says Attila Suhajda, one of the organizers of the Labor Code Conference

which took place on October 6 and was sponsored by Sándor Szegedi Szent-Ivány & Komáromi Attorneys at Law. Clearly, the participants at the conference do think the issue is an important one to be addressed now, and they represent a vast range of employers and employees, Suhajda says. The conference was attended by representatives from

American Chamber the American and the British Chamber of Commerces (who organizing a series of six workshops, each dedicated to a chapter

of Commerce in Hungary ★ initiated it), the German Chamber, the Hungarian Service and of the thesis for a new labor code, which was presented at the Outsourcing Association (of which Suhajda is the president), the conference, says Suhajda. The idea of the workshops, which should 38 Confederation of Hungarian Employers and Industrialists, the be finished before the next parliamentary elections, is to debate Hungarian Chamber of Commerce and Industry, the Joint Venture the details, collect arguments, and familiarize everybody involved, Association, the National Association of Entrepreneurs and including politicians, with the issues, Suhajda adds. Participants AmCham Employers, the National Federation of Hungarian Trade Unions, are also looking into the possibility of setting up a dedicated Hungary and representatives of ministries and the academic world, among website and of continuing the cooperation for a new labor code others. The participants decided “to go forward together” by under the umbrella of a common name. ★

Health care: debating vital questions

“The good news is that, today, the opinions on what should be done level crisis, ranging from a lack of money and a bad infrastructure, in this sector of people closely involved in health care tend to be to human resources issues, and a crisis of confidence in the larger nearer to each other than they used to be,” says Csaba Szokodi, society, he says. “Year after year, the system has been eroding, so chairman of the AmCham Healthcare Committee, when looking now we need crisis management to tackle the acute problems, as back at the first meeting in a series of “Debates on vital questions in well as a long-term plan to reform health care.” Hungarian health care policies” which this committee is organizing. The second event in the series will focus on health care trends It is already very positive that representatives of both political and strategies. ★ sides took part in the first debate, held on October 13, notably former socialist minister of health Dr. Jenő Rácz and former Fidesz minister of health Dr. István Mikola, says Szokodi. Also present were a range of highly respected health care experts such as Dr. András Szepesi (chief editor of The Hospital), Dr. Éva Orosz (ELTE professor), and Eszter Sinkó (Semmelweis University). “Our objective with these debates, with and between experts and politicians, is to find solutions and compromises,” Szokodi says. “We do need consensus between major political players, and we do not want health care to become a tool in political games again, as it was in the days of the referendum.” The first debates have also reiterated that Hungarian health care is in a multiple- Investing in new ★

technologies AmCham: Patron interview GE keeps a significant footprint in Hungary

In spite of the fact that GE is now negotiating with trade unions to the education policies of the past, it is relatively easy to find about the layoff of 2,570 people in Hungary, the country stays very lots of people with talent, intellectual power and drive here, he important for the company and GE will still employ more than says. “That is why we have no less than seven technology centers 11,000 after the planned restructuring. “As elsewhere, we are shifting in the CEE.” Through its philanthropic GE Foundation Scholar- investments to modern products and sectors,” says Ferdinando Leader program the company also invests in the human capital of Beccalli-Falco, president and CEO of GE International. There is the region and also fosters the formation of a Central European – also with GE – a shift in the lighting industry from the traditional network of future leaders. low-efficiency lighting towards more modern energy efficient Beccalli expects that, as a result of the crisis, business will face products, “and we keep investing in modern health care, energy, increasing regulation. It might lead to certain problems as regulation transportation, and water-treatment technology development and tends to stifle growth, he says, “but more and more, governments production all over the world including in Hungary, too,” he adds. will set the direction, framework, and regulations in which private Beccalli, who also gave a speech at a “Global Leaders on enterprise will have to operate,” adding that especially the 39 the AmCham Podium” dinner at the Kempinski Hotel Corvinus cooperation between business and national as well as lower levels Budapest on November 23, emphasizes that GE has and will of government will increase. GE is currently implementing a pilot continue to have “a massive footprint” in Hungary. “We were the program with 11 cities in the world, he says, where the company AmCham first big international company that made a major investment in looks at the problems these cities have with environment, energy, Hungary Hungary in 1989, and we plan to continue to invest, if the region water, and other infrastructure areas, and then will try to create – continues to grow” he says. In Hungary, GE employs 14,000 together with the cities – systematic solutions. “We are no longer people, operates 12 factories, a bank, three regional headquarters, selling a product, we sell a solution. We don’t just sell a power and three business technology centers including one with global station to a city, but a complete energy solution that can include responsibility for lighting. solar energy, wind energy, and even water treatment,” he says. This Confronted with the worldwide financial and economic crisis, also means that GE has to team up with other companies which are GE decided to concentrate on its core businesses and to invest specialized in certain aspect of that total solution, he adds. even more in technology, Beccalli explains. “We don’t know GE also believes that a regional energy cooperation could whether this crisis is U-shaped, V-shaped, or W-shaped, but it will boost the competitiveness of every participating Central European end and we need to be ready when the new growth cycle starts. In country within the framework of the EU, while also helping them the next years, we will especially develop technologies that boost to get closer to the 20-20-20 target and prepare for the energy environmental sustainability, as the problems in the environment demand of the next growth cycle. ★ really can no longer be ignored. Health care technology, that makes it possible that people will live longer than they used to live and can reach their 100th anniversary in good health, will be another important development, as will be technologies to help eliminate the poverty gap between the haves and the have-nots in this world,” he says. In his view globalization, of which Hungary has been a beneficiary in the past 20 years, will continue to be an important factor in future growth, although not the US consumers, but the Eastern consumers in China, India, and possibly also in Central and Eastern Europe (CEE) will drive worldwide growth. “The economies of the CEE are and will be extremely interesting. Since these countries joined the EU, cash is flowing to solve problems in infrastructure modernization like energy, transportation, water, and others. So growth and investment in these countries will continue and they still have huge potential if they leapfrog with their infrastructure using top technology.” He also emphasizes the importance of the central location within the EU and closeness to the non-EU markets, the high level of education and the talent pool in all these countries. Thanks Third annual conference on diversity

On October 1, the third-annual conference on diversity was held, organized together with Salva Vita Foundation. The title of the conference was “Employment of people with disabilities – in the spirit of creativity and innovation”. In Hungary, the number of people living with a compromised ability to work, including people with disabilities, is approximately 650,000. While in the EU, the employment rate of this group is 30–4%, in Hungary it is only estimated at 9–13%. It is in the essential interest of companies to open up towards this population as they represent a workforce yet

unused. ★ American Chamber

of Commerce in Hungary ★ 40

AmCham Hungary Seminar on the liberalized electricity market

New trends in the liberalized electricity market, that was the subject of a seminar on October 26, organized by AmCham in cooperation with ELMŰ-ÉMÁSZ Group in the Kempinski Hotel Corvinus Budapest. The seminar provided a brief overview of the current status of the domestic energy market, aspects of the purchase of power, prevailing price trends and relevant expectations, and the possibilities in energy efficiency and energy savings in both the corporate and the private sector. ★

A Day To Make It Happen

on october 3, the AmCham Foundation organized “A Day to Make it Happen”. 66 volunteers gathered at the park of the Hűvösvölgyi Gyermekotthon to put part of the huge garden back into shape. The AmCham Foundation would like to thank all volunteers and supporters for their contribution! Special thanks to Aquastella (mineral water), GE Consumer and Industrial Lighting (light bulbs), Interdean Hungária Nemzetközi Költöztető Kft. (containers), Jávorszky Tiszafa Kft. (gardening tools), Sándor Szegedi Szent-Ivány Komáromi Eversheds Attorneys at Law (containers), and Lexmark International Technology Hungária Kft. (plants) for their help! ★ Seminar on foreign corporation rules

On November 11, AmCham, Amicorp of Commerce in Hungary Switzerland, A.G. and ABN AMRO Private

Banking together organized a seminar ★

called “Successfully navigating through new American Chamber Hungarian controlled foreign corporation rules”. The event at the Kempinski Hotel Corvinus Budapest dealt with the upcoming changes in the Hungarian tax legislation, especially the Controlled Foreign Corporation (CFC) rules, effective January 2010. ★

Thanksgiving Dinner 41

over 150 people attended AmCham’s traditional Thanksgiving dinner, which took place on November 26 at the Budapest Marriott AmCham Hotel. They enjoyed a wonderful buffet and the charity auction to Hungary support the AmCham Foundation.. ★ AmCham Annual General Assembly

Opening the 20th AmCham Annual General Assembly (AGA) on past years. After strong campaign speeches by all candidates, David December 1 at the Budapest Marriot Hotel, AmCham President Young, partner at Amrop Hever Group / Kohlmann & Young Kft., Gusztáv Bienerth highlighted the numerous internal and external was elected First Vice-President, and Steve Corwell, CEO of AES changes experienced by AmCham, placing emphasis on the Hungary, became Second Vice-President in a very tight race. The continuous efforts of AmCham in lobbying for a more competitive new Secretary Treasurer of AmCham is Ferenc Pongrácz, CFO of business environment in Hungary. Péter Dávid, CEO of AmCham, IBM Hungary, and three new members were taken onto the Board: highlighted the major milestones over the past months, including the John Cantwell, managing director of Dramatrix, Andrea Jádi-Németh, 20th Anniversary Celebration, conferences for a New Labor Code CEO of bpv | Jádi Németh Attorneys at Law, and Frank J. Klausz 3rd,

and on advertisement regulations, and the new visual identity of the director of A.T. Kearney. All positions are for a two-year term. The Chamber, just to name a few. Dávid finished his report by thanking AGA also gave a forum for the presentation of the Dr. Iván Völgyes the outgoing board members Péter Paál, László Szakál, Erzsébet Award, which recognizes an individual’s significant contribution to Antal, Barbara Brill, and Christopher Mattheisen for their dedication the strengthening of US-Hungarian investor relations. This year, and significant contributions to the Chamber’s successes over the the award was presented to László Czirják, a former President of AmCham and the current Chairman of the Corporate Governance Committee, with a mission of improving the ethics of private, nonprofit, and public sector governance

American Chamber practices, in line with AmCham’s mission.

of Commerce in Hungary ★ The award was handed over by László Deim from Synergon, as supporter of 42 the award. AmCham would like to thank Lakatos, Köves and Partners Attorneys at Law for being the exclusive sponsor of the AmCham Annual General Assembly 2009. ★ Hungary

Thanksgiving Charity Drive

The aim of this year’s Thanksgiving Charity Drive was to support SPECIAL THANKS TO THE COMPANIES AND children’s homes in Szabolcs-Szatmár-Bereg county. The charity INDIVIDUALS WHO HAVE ALREADY CONTRIBUTED TO auction at the Thanksgiving Dinner raised close Ft to,600.000. AMCHAM FOUNDATION’S THANKSGIVING CHARITY The Disabled Home in Kisléta provides long-term residential DRIVE 2009: care facilities dedicated exclusively to children and young people Alapy Family • Amrop Hever Group / Kohlmann & Young Kft. • with severe physical and intellectual disabilities. Staff provides Árvay Family • Bán, S. Szabó and Partners Ügyvédi Iroda • Balogh, medical, therapeutic, educational and recreational services for as István • Benkő, Anikó • Bosnyák Family • Budapest Marriott Hotel • many as 220 children and young adults, among them 58 children Cagney, Clane • Candy Hungary • Citibank Hungary • Coca-Cola aged zero to 16 years. The children require continuous skilled Beverages Magyarország Kft. • Corinthia Grand Hotel Royal • nursing care. Most of them are abandoned and they aren’t visited Corwell, Steve • Czirják, László • Dobozy, Rózsa • Dow Hungary or supported by their families. Disabled children who are unable to Chemicals Ltd. • Drain, Marianne • ExxonMobil BSC Hungary • live at home are the most vulnerable ones. Moreover, these children Elcoteq Hungary Kft • Family Frost Kft. • FirstMed Centers Kft. • often have complex medical problems. ★ Flextronics International Kft. • Füzes Péter • Fox Autorent • GE Lighting • Grader, Robert • Holmes Place Hungary • Hyde, Juliette • IBUSZ Travel Agency • ICON Restaurant, Hilton Budapest • Interag Holding Zrt. • Interdean Hungária Nemzetközi Költöztető Kft. • Jabil Circuit Magyarország Kft.* Dr. Jádi-Németh, Andrea • Jávorszky Tiszafa Kft. • Johnson & Johnson Kft. • Kukaj, Zsuzsanna • Kovács Gábor Művészeti Alapítvány • Manhattan Language Studio • Masterfoods Magyarország Bt. • Mécs és Társai Kft. • Memolux Kft. • Millennium Court Executive Apartements • Moldován, András • Nagy, Andrea • Nagy, Eszter • Nuance-Recognita Corp. • Peaslee, Robert • Reader’s Digest Kiadó Kft. • SSL Hungary • Sándor Szegedi Szent-Ivány Komáromi Eversheds Attorneys at Law • SCA Hygiene Products Kft. • Szokodi, Csaba • Synergon Informatikai Nyrt. • Tensi Aviation • Tesco – Global Áruházak Rt. • Zwack Unicum ★ new members – business AmCham Staff

Manhattan Studio Kft. PÉTER DÁVID

Chief Executive Officer CEO: Zoltán Debrei Marketing Director: Szilvia Szládek [email protected] Address: 1106 Budapest, Fehér út 1 T: (+36.1) 266 9880 Phone/Fax: (+36.1) 431 8630

Website: www.manhattannyelvstudio.hu LÁSZLÓ METZING

Chief Operating Officer of Commerce in Hungary

[email protected] ★

Clients of all industries rely on Intercomp Global Services since 1994 for standardized T: (+36.1) 266 9880 / ext. 316 American Chamber multi-country payroll services currently delivered to over 60,000 employees per month, over 574 clients (mostly Fortune 1000) in more than 25 countries. Intercomp ANITA ÁRVAI

brings peace of mind, efficiency and cost reducing impact owing to its centralized Events Manager payroll model and system. [email protected]

T: (+36.1) 266 9880 / ext. 325 new members – business ERIKA BOSNYÁK

Holmes Place Gozsdu Club Finance Manager

[email protected] CEO: Steven E. Kuhn 43 T: (+36.1) 266 9880 / ext. 312 Address: 1075 Budapest Holló u. 12-14 Gozsdu Yard “C” Yard Phone: (+36.1) 878 1302 Ildikó Bryják AmCham Website: www.holmesplace.hu Project Manager Hungary [email protected]

T: (+36.1) 266 9880 / ext. 310

Holmes Place Gozsdu Club is Hungary’s first private Holmes Place Health Club located in the recently renovated and luxurious surroundings of the Gozsdu Yard. Zsófia Juhász Holmes Place is a Premium-Health Club and offers a wide range of health-, fitness- Marketing and Communications and wellness-services for a well-balanced life. Manager [email protected]

T: (+36.1) 266 9880 / ext. 360 new members – Corporate

Horváth & Partners DLA Emília RÉPÁSZKY Membership Manager CEO: Dr. András Posztl [email protected] Address: 1123 Budapest Alkotás u. 50 T: (+36.1) 266 9880 / ext. 329 Phone: (+36.1) 325 3020 Fax: (+36.1) 325 3021 Péter Tausz Website: www.dlapiper.com Research and Legal Specialist

[email protected]

T: (+36.1) 266 9880 / ext. 350 Horváth & Partners DLA Piper is one of the leading corporate law firms in Hungary. DLA Piper is among the most dynamically developing international legal practice, with its 3,500 lawyers in 67 offices in 29 countries around the world. It has presence AmCham Office in seven countries within Central Eastern Europe. In terms of its size, DLA Piper was ranked first on the revenue list of Business Global 100 in 2009. according to ADDRESS: Mergermarket, the firm, managed jointly from Chicago and London, was ranked first Budapest 1051 Szent István tér 11. among the world’s M&A legal practices based on the number of M&A transactions Mailing Address: Budapest 1365 Pf.: 741. in 2008. DLA Piper – against the recent prevailing trend among international law T: (+36.1) 266 9880 firms – anticipates a strong, long-term and dynamically developing market presence Fax: (+36.1) 266 9888 in Hungary as well. E-mail: [email protected] Website: www.amcham.hu AZ ÜZLETI UTAZTATÁ S TÖBB, MINT REPÜLŐJEGY FOGLALÁS... ÖN GONDOLT MÁR ERRE? FORDULJON AZ AMERICAN EXPRESS BUSINESS TRAVEL IRODÁJÁHOZ!

Bízza ránk üzleti útjai szervezését, és maximalizálja megtakarí- tásait! Erre nyújtanak garanciát tapasztalt utazási referenseink és ügyfélkapcsolati menedzsereink. 2200 irodával világszerte, telefonon vagy e-mailen, igény szerint On-line megoldásokkal, teljeskörű szolgáltatást nyújtunk hazai és nemzetközi partnere- inknek!

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